LITTLE DIFFERENCE IN DAILY AND CONTINUOUS COMPOUNDINGBeatson Wallace
Continuous Compounding:FV = $10,000 x 2.7183(15% x 1)= $11,618.34 With daily compounding, the total interest earned is $1,617.98, while with continuous compounding the total interest earned is $1,618.34, a marginal difference. What Is Compound Interest?
Compounding Interest | Formula, Types & Examples from Chapter 16 / Lesson 8 329K Review the definition of compound interest. Use the compound interest formula in daily, monthly, quarterly, and annual compound interest example calculations. ...
Most interest discussions leave e out, as continuous interest is not often used in financial calculations. (Daily compounding, $(1 + r/365)^365$, is generous enough for your bank account, thank you very much. But seriously, daily compounding is a pretty good approximation of continuous growth...