Continuously compounded rate of return

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Revision as of 06:47, 3 August 2013 by imported>Doug Williamson (Spacing)
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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