--%>

Exdplain how does continuous compounding profit an investor

How does continuous compounding profit an investor?

The effect of raising the number of compounding periods per year is to raise the future value of the investment. The more frequently interest is compounded, the greater the future value. The smallest compounding period is utilized while we do continuous compounding compounding which occurs every tiny unit of time (the smallest unit of time imaginable).

   Related Questions in Finance Basics

  • Q : Cause-and-effect chain Normal 0 false

    Normal 0 false false

  • Q : The official unemployment rate Normal 0

    Normal 0 false false

  • Q : Describe GATT and its goal Describe

    Describe GATT, and its goal? GATT is the General Agreement on Tariffs & Trade. This is a treaty that seeks to decrease trade barriers among participant nations.

  • Q : Price The Audiology Department at

    The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Variable cost per service Annual Direct Fixed cost Annual Number of Visits Basic Examination $5. $50,000 3,000 Advanced

  • Q : What is the cost of equity Intermediate

    Intermediate Finance   Always leave 4 decimals in the ($) numbers in your calculations (e.g. PMT = $10.8924) and, particularly, 6 decimals for interest rates (e.g. r = 0.078643 or 7.8643%). QUESTION 1:?Conlins Manufactu

  • Q : Governments fiscal policy options for

    Normal 0 false false

  • Q : Why do assets equal the sum of total

    Why do overall assets equal the sum of total liabilities and equity?  Describe.            Assets = Liabilities + EquityAssets are the items of value business owns. Liabilities ar

  • Q : What is Unanticipated Cost or Funding

    Unanticipated Cost or Funding Shortage: A lack or scarcity of (a) cash in a fund, (b) expenses authority due to an inadequate appropriation, or (c) expenses authority due to a cash problem (example, reimbursements not received on a timely base).

  • Q : Multiplier effect Normal 0 false false

    Normal 0 false false

  • Q : Better risk measure in evaluating risk

    Why is the coefficient of variation a better risk measure to employ than the standard deviation while evaluating the risk of capital budgeting projects? The coefficient of variation is a better risk measure than the standard deviation alone sinc