Continuously compounded interest assumes interest is compounded and added back into the balance an infinite number of times. The formula to compute continuously compounded interest takes into ...

Peerawich Phaisitsawan/Getty Images Continuous compound interest is a formula for loan interest where the balance grows continuously over time, rather than being computed at discrete intervals.

Continuous compounding is similar in concept to annual compounding, except the compounding periods are infinitely small. Although the annual compounding formula can be easily modified to ...