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Continuous Compounding

Continuous Compounding can be used to determine the future value of a current amount when interest is compounded continuously. Use the calculator below to calculate the future value, present value, the annual interest rate, or the number of years that the money is invested.

Continuous Compounding Definition

Continuous Compounding happens when interest is charged against principle and compounds continuously, that is the interest is continuously added to principle to be charged interest again.

Continuous Compounding Variables

FV=The future value of the principle after interest has been applied
PV=The present value of the principle before interest has been applied
R=The annual rate of interest charged
T=The number of years that the interest is charged to the principle
e=2.718281828�

 


Continuous Compounding Formula

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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