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Currently, the dominating constraint in many high performance computing applications is data capacity and bandwidth, in both inter-node communications and even more-so in on-node data motion. A new approach to address this limitation is to make use of data compression in the form of a compressed data array. Storing data in a compressed data array and converting to standard IEEE-754 types as needed during a computation can reduce the pressure on bandwidth and storage. However, repeated conversions (lossy compression and decompression) introduce additional approximation errors, which need to be shown to not significantly affect the simulation results. We extend recent work [J. Diffenderfer, et al., Error Analysis of ZFP Compression for Floating-Point Data, SIAM Journal on Scientific Computing, 2019] that analyzed the error of a single use of compression and decompression of the ZFP compressed data array representation [P. Lindstrom, Fixed-rate compressed floating-point arrays, IEEE Transactions on Visualization and Computer Graphics, 2014] to the case of time-stepping and iterative schemes, where an advancement operator is repeatedly applied in addition to the conversions. We show that the accumulated error for iterative methods involving fixed-point and time evolving iterations is bounded under standard constraints. An upper bound is established on the number of additional iterations required for the convergence of stationary fixed-point iterations. An additional analysis of traditional forward and backward error of stationary iterative methods using ZFP compressed arrays is also presented. The results of several 1D, 2D, and 3D test problems are provided to demonstrate the correctness of the theoretical bounds.