Question

What is continous compounding? Explain with the help of an example.

Answer 1

Answer:

Continuous compounding is the mathematical limit that compound interest can reach if it's calculated and reinvested into an account's balance over a theoretically infinite number of periods. ... It is an extreme case of compounding, as most interest is compounded on a monthly, quarterly or semiannual basis.

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Answer 2

Answer:

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