The formula for continuous compounding is FV = Pe^(rt) where r is the annual rate and t is the time (in years). In practical terms the result of continuous compounding will be the same as compounding daily (or hourly) unless P is really big.The formula is the result of applying limits to the formula that uses discrete periods.
The formula for continuous compounding is FV = Pe^(rt) where r is the annual rate and t is the time (in years). In practical terms the result of continuous compounding will be the same as compounding daily (or hourly) unless P is really big.The formula is the result of applying limits to the formula that uses discrete periods.
westofvideo 1 year ago
good job
what if the interest is continuously compounding?
what formula do you use?
mathproblems 1 year ago