Continuous Interest Formula

Continuous Interest Formula

What is Continuous Interest?

​In the previous lesson, we learned about Compound Interest, which is calculated on a daily, weekly, monthly, quarterly, semi-annually, or annual basis.

In this lesson, we will learn about the formula used when we compound continuously.

The continuous compounding formula should be used when they mention specifically that the amount is "compounded continuously" in a problem.

What is Continuous Interest?

What is Continuous Interest?

Example:

Multiple Choice

• $8,807.67

• $8,785.31

• $8,000.23

Multiple Choice

• $4,807.67

• $4,299.30

• $4,000.23

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