Most financial institutions compound interest more than once a year. For instance, you may have an account that will return your interest to the account at the end of each month (12 times a year). To compound more than once a year both the rate and the time in the annual compounding formula need to change. We'll call the resulting formula the general compounding formula. After successfully completing these videos, you'll be able to apply the general compounding formula. This material is covered on pages 119-121 in our text.
An introduction to general compounding