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Continuous compounding

• The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned continuously, and at each instant, the interest that accrues immediately begins earning interest on itself.

• Compounding of interest an infinite number of times per year at intervals of microseconds.

 
 Embedded terms in definition
 Basis
Compounding
Forward
Interest
Time value of money
Time value
Time
 
 Related Terms
 Compounding
Compounding frequency
Compounding period
Continuous probability distribution
Continuous random variable
Discrete compounding
Quarterly compounding
Semi annual compounding

<< Continuing operations Continuous probability distribution >>

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