Question

What does compounded hourly mean

Answer 1

Compounded hourly refers to the frequency at which interest is added to an initial investment or loan. Interest is calculated and added to the principal every hour.

Step-by-step explanation:

In the context of finance and interest calculations, compounded hourly refers to the frequency at which interest is added to an initial investment or loan. It means that interest is calculated and added to the principal every hour, resulting in more frequent compounding and potentially higher overall interest earned or owed.

Answer 2

compounded interest means that an account balance is constantly earning interest, as well as refeeding that interest back into the balance so that it, too, earns interest.