Math SLP and Discussion: Exponential & Logarithmic Functions



Exponential & Logarithmic Functions

Continuous Compounding

Continuous compounding is extreme version of compounding. Under this process, the interest earned over the deposit or capital starts earning interest after regular intervals. In simple words, as the interest is earned, it becomes a part of the capital and as a general rule; it also earns interest over the capital amount. Continuous compounding, unlike other compounding which is done on a daily, monthly, quarterly or semi annul basis, is an farthest case of compounding.

Using the formula of the continuous compounding, we have

A = C e ^ (R T)

Where,

Initial ...