continuous compounding

Definition

The process of calculating interest and adding it to existing principal and interest at infinitely short time intervals.

Use this term in a sentence

Based on the information on the note, it was stated that the interest would be calculated through continuous compounding method.

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When Steve looked at his credit card bill, he realized that the bank was using the formula of continuous compounding to track his interest payment and he was upset.

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The student loan came with terms of continuous compounding while the student was still in school and if the interest was not paid than the interest would be added to the principal and this value would have continuous compounding as well.

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continuing operations discrete compounding