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Earn +20 ptsQ: Does compounding always reduce the principal?
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What does continuous compounding mean?
Continuous compounding is the process of calculating interest and adding it to existing principal and interest at infinitely short time intervals. When interest is added to the principal, compound interest arise.
Why would you use a compounding interest calculator?
You would use a compounding interest calculator in order to determine how quickly a certain amount of money will grow due to compounding interest. It is useful for determining how much to save and invest over several years.
More frequent compounding results in higher future values and lower present values than less frequent compounding at the same interest rate?
Yes
What does extemporaneous compounding mean?
preparing medication for a specific patient
What is the continuous compounding rate equivalent to an effective interest rate of 18 percent?
2
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