continuous compounding

/kənˌtɪnjυəs kəm'paυndɪŋ/ noun
a system where interest is calculated all the time and added to the principal

Dictionary of banking and finance. 2015.

Look at other dictionaries:

  • Continuous Compounding — The process of earning interest on top of interest. The interest is earned constantly, and immediately begins earning interest on itself. This is an extreme case of compounding, most interest is compounded on a monthly, quarterly, or semiannual… …   Investment dictionary

  • Continuous compounding — The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned continuously, and at each instant, the interest that accrues immediately begins earning interest on itself. The New… …   Financial and business terms

  • continuous compounding — The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself. Bloomberg… …   Financial and business terms

  • continuous compounding — method of calculating interest according to the principal and interest already accrued …   English contemporary dictionary

  • Continuous-repayment mortgage — Analogous to continuous compounding, a continuous annuity[1][2] is an ordinary annuity in which the payment interval is narrowed indefinitely. A (theoretical) continuous repayment mortgage is a mortgage loan paid by means of a continuous annuity …   Wikipedia

  • Discrete Compounding — refers to the method by which interest is calculated and added to the principal at certain set points in time. For example, interest may be compounded daily, weekly, monthly or even yearly. Discrete compounding is the opposite of continuous… …   Investment dictionary

  • НЕПРЕРЫВНОЕ НАЧИСЛЕНИЕ СЛОЖНЫХ ПРОЦЕНТОВ — CONTINUOUS COMPOUNDINGНачисление сложных процентов осуществляется непрерывно, а не через дискретные промежутки времени …   Энциклопедия банковского дела и финансов

  • Compound interest — The effect of earning 20% annual interest on an initial $1,000 investment at various compounding frequencies Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also… …   Wikipedia

  • Rule of 72 — In finance, the rule of 72, the rule of 70 and the rule of 69 are methods for estimating an investment s doubling time. The number in the title is divided by the interest percentage per period to get the approximate number of periods needed for… …   Wikipedia

  • Time value of money — The time value of money is the value of money figuring in a given amount of interest earned over a given amount of time. The time value of money is the central concept in finance theory. For example, $100 of today s money invested for one year… …   Wikipedia

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