Compounded Continuously Number. Continuous compound interest calculator directions. In this case the number of periods when compounding occurs is infinite.
The continuous compounding formula determines the interest earned which is repeatedly compounded for an infinite time period. This calc will solve for a final amount p principal r interest rate or t how many years to compound. Initial principal amount is 1 000.
This formula makes use of the mathemetical constant e.
It is an extreme case of compounding since most interest is compounded on a monthly quarterly or semiannual. 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. Continuous compounding is the mathematical limit that compound interest can reach. The continuous compounding formula is used to determine the interest earned on an account that is constantly compounded essentially leading to an infinite amount of compounding periods.