Continuous Compounding Interest Calculator is used to calculate the Continuous Compounding Interest of an amount at a given interest rate and time period
- Total Interest Earned:
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- Final Amount:
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- What does Continuous Compounding mean?
- Continuous Compounding of interest means the principal is constantly earning interest. It occurs when interest is charged against the principal and compounds continuously.
- Formula
Continuous Compounding = P * e^rt
Where:-
- P - The original balance or Principal
- r - Rate of interest
- t - Time period
- Example
Suppose an account has a balance of $1000 and the rate is 10% p.a. To calculate the ending balance after a span of 2 years;
It can be shown as $1000 times e(.2) and will return a balance of $1221.40 after the two years.
History
- May 22, 2018
- Tool Launched
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