The continuous compounded interest formula is below. To calculate continuously compounded interest use the formula below. The interest is compounding every period and once its finished doing that for a year you will have your annual interest ie.
Where P Principal amount Present Value t Time.
Where P Principal amount Present Value t Time. Your bank says that their rate is 100 per year. This means that at the end of the first year youll receive 1 extra dollar. The formula for compound interest is P 1 rn nt where P is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period and t is the number of time periods.