The Computation Interval field determines the frequency at which interest is calculated under U.S. Rule (simple interest) and Canadian. The Computation Interval field appears in the cash flow data window in place of the Compounding Period field when U.S. Rule or Canadian is the selected Compute Method.
The Computation Interval is usually the same frequency as the Payment Period. It may also occur more frequently than payments, such as with a daily rate period and monthly payments.
The Computation Interval cannot occur less frequently than payments. Monthly payments, for example, cannot be combined with an annual rate period.
Learn about choosing a compounding period or computation interval.