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What is 'Continuous Compounding'
Continuous compounding is the process of earning interest on top of interest. The interest is earned constantly, and immediately begins earning interest on itself.
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BREAKING DOWN 'Continuous Compounding'
This is an extreme case of compounding, most interest is compounded on a monthly, quarterly, or semiannual basis.
RELATED TERMS

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RELATED FAQS

How often is interest compounded?
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What formula can I use to calculate interest on interest?
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How do mutual funds compound interest?
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Other than my savings account, what other types of holdings compound my interest?
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