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What is continuous​ compounding? How does the APY for continuous compounding compare to the APY​ for,...

What is continuous​ compounding? How does the APY for continuous compounding compare to the APY​ for, say, daily​ compounding? Explain the formula for continuous compounding.

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Doubt in this then comment below. I will explain you.

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please thumbs up for this solution. Thanks..

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​​​​​​For rate of interest r , if we take compounding period infinite ... So that means continous compounding...

Simply we say that this is compound interest value when we take compounding period infinite..

In above example , very small difference in daily compounding and continous compounding..

Because as we increase no of periods , compound interest vue come closer to continous compounding value..

Formula for continous compounding is

Future value = present value * e^(r*t) ....

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