Continuous Compounded Interest
Interest that is, hypothetically, computed and added to the balance of an account every instant. This is not actually possible, but continuous compounding is well-defined nevertheless as the upper bound of "regular" compound interest. The formula, given below, is sometimes called the shampoo formula (Pert®).
Note: This same formula can be used for exponential growth and exponential decay.
![](http://www.mathwords.com/c/c_assets/c137.gif)
![](http://www.mathwords.com/c/c_assets/c138.gif)
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