Although the annual compounding formula can be easily modified to accommodate smaller periods, the number of compounding periods used for continuous compounding would be infinitely numerous.

Compounding is the act of measuring the amount of interest gained in order to reinvest that interest back into an account. Discover our continuous rate formula and instructions.

D. Bonds with Continuous Compounding Example 5: Bonds with continuous compounding Continuous compounding refers to interest being compounded constantly.

The miracle of compounding can turn a mere $1,000 into millions of dollars -- or it can just strengthen your savings account via compound interest.