Formula for interest rate compounded continuously
Because you may encounter continuously compounded growth rates examine the Black-Scholes option pricing formula, here is a brief introduction to what In our context, this means that if $1 is invested at 100% interest, continuously. r = Interest Rate. The calculation assumes constant compounding over an infinite number of time periods. Since the time period is infinite, the exponent helps in a Continuous Compound Interest Formula. It's easy to calculate compound interest in our head with an easy number and interest rate like the one in the example