Continuously Compounded Interest
Interest that
is, hypothetically, computed and added
to the balance of an account every instant.
This is not actually possible, but continuous compounding is well-defined
nevertheless as the upper bound of "regular" compound
interest. The formula, given below, is sometimes called the shampoo
formula (Pert®).
Note: This same formula can be
used for exponential growth and exponential
decay.


See also
Half-life, doubling
time
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