Bricks and clicks and Continuously compounded rate of return: Difference between pages
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The more frequently a nominal annual rate of interest is compounded within a given time period, the greater the total interest accrued by the end of the period. | |||
Continuous compounding takes this process to its theoretical limit by assuming that the nominal annual interest is calculated and compounded continuously at the given continuously compounded % rate. | |||
==See also== | |||
* [[ | |||
== See also == | |||
* [[ | * [[Compounding effect]] | ||
* [[ | * [[Effective annual rate]] | ||
* [[Nominal annual rate]] | |||
Revision as of 21:52, 13 December 2014
The more frequently a nominal annual rate of interest is compounded within a given time period, the greater the total interest accrued by the end of the period.
Continuous compounding takes this process to its theoretical limit by assuming that the nominal annual interest is calculated and compounded continuously at the given continuously compounded % rate.
