interpolate

interpolate definition - business

interpolate

To estimate a value that is between two known values. For example, suppose a financial institution advertises interest rates it is paying for 3-month, 6-month, and 12-month savings instruments. A potential saver wanting to invest in a 9-month certificate might estimate the rate that will be paid by interpolating between the 6-month rate and the 12-month rate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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