what is continuous compounding? explain with help of example.
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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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- This article deals with continuous compound interest formula and its derivation. Continuous compounding most certainly refers to the mathematical limit that compound interest is capable of reaching if it is calculated and reinvested into an account’s balance over an infinite number of periods.
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