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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.
Does compounding always reduce the principal?
false
What is mean by compounding variable?
I think there is confusion between the terms "compounding variable" and "confounding variable". My way of looking at it is that compounding variables describe elements of mathematical functions, only. Confounding variables apply to any research in any domain and are external variables to the research design which might impact on the dependent variable to a lesser or greater extent than the independent variable, which are part of the research design. I am Peter Davies at classmeasures@aol.com
More frequent compounding results in higher future values and lower present values than less frequent compounding at the same interest rate?
Yes
