It turns out that the continuously compounded interest rate is given by. Using the compound interest formula calculate principal plus interest or principal or rate or time. Compound Interest in Excel Formula.
To introduce number e well use the example of continuous compound interest.
R Interest rate and is always represented as a decimal. Simple Interest and Compound Interest Simple Interest. FV 10000 x 1 15 2 2 x 1 1155625 Quarterly Compounding. Example of How to Use Continuous Compounding Annual Compounding.