What is Future Value with Continuous Compounding?
Continuous compounding is often used in theoretical models and in situations where interest is compounded very frequently, such as in certain financial derivatives or when dealing with very short time periods. However, it's worth noting that in real-world scenarios, compounding is typically done at discrete intervals, such as annually, quarterly, or monthly, rather than continuously.
How to Calculate Future Value with Continuous Compounding?
Future Value with Continuous Compounding calculator uses Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods) to calculate the Future Value with Continuous Compounding, The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals. Future Value with Continuous Compounding is denoted by FV_{CC} symbol.
How to calculate Future Value with Continuous Compounding using this online calculator? To use this online calculator for Future Value with Continuous Compounding, enter Present Value (PV), Interest (I) & Number of Compounding Periods (n_{cp}) and hit the calculate button. Here is how the Future Value with Continuous Compounding calculation can be explained with given input values -> 30.44522 = 10*ln(7*3).