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Continuous compounding
also called Compound interest

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  1. For interest compounded a certain number of times, n, per year, such as monthly or quarterly, the formula is: Continuous compounding can be thought as making the compounding period infinitely small

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on June 24, 2009
  2. therefore achieved by taking the limit of n to infinity

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on June 24, 2009
  3. One should consult definitions of the exponential function for the mathematical proof of this limit

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on June 24, 2009
  4. The amount function is simply A common mnemonic device considers the equation in the form called 'PERT' where P is the principal amount, e is the base of the natural log, R is the rate per period, and T is the time (in the same units as the rate's pe

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on June 24, 2009
  5. With continuous compounding the rate expressed per year is simply 12 times the rate expressed per month, etc

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on June 24, 2009
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