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The term Continuous Compounding refers to the maximum limit of Compound interest. It is a typical situation for sure, as the interest is usually calculated or added on a periodic basis, say monthly or annually.
Though Continuous Compounding is not feasible in a regular set up, in the world of Finance, it holds a lot of significance. For a detailed understanding, manuals as continuous compounding assignment help are of great help!
Continuous Compounding-The Break Down
In a day to day scenario, the compound interest is calculated on everyday, or monthly, or quarterly or annual basis. However, in case of Continuous Compounding, the compound remains constant, and the interest is calculated using an infinite period of time.
When the investment amount is very high, continuous compounding does yield great amount of interest. Manuals as continuous compounding assignment help can be of real service to students in this regard!
Formula for Continuous Compounding
FV=PVxe^(i x t)
Where PV is the investment value right now
i is the interest rate
n is the compounding periods
t is the time(years)
e is mathematical constant, and the value is 2.7183
Benefits of Continuous Compounding
Problems faced by Students
Students face a lot of hardships while handling this subject and this is not an exaggeration. To derive the right numbers and to arrive at a logical solution is a very difficult job.
With the advent of excel sheets, the entire process has become relatively simple. The students, as well as the professionals, have to just insert the values inside the excel formula, and they will have the computations ready.
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Why are such manuals needed?
No Excel sheet or calculator will fill the excel sheet of its own. The values have to be determined by you. It becomes imperative that you understand the subject well to ace it.
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