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Formula for continuously compounding interest

Khan AcademySal Khan

Formula for continuously compounding interest

Compound interest is when interest is added to the principal, so the interest also earns interest. Continuous compounding is a special case where interest is added an infinite number of times per year, making the growth smoother and faster. Learn how to use formulas to calculate compound interest and continuous compounding.

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$Given the formula for continuous compounding: A = Pe^{rt}w... | Filo$

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