What is the difference between compounded annually and compounded continuously?

What is the difference between compounded annually and compounded continuously? Discretely compounded interest is calculated and added to the principal at specific intervals (e. g. , annually, monthly, or weekly). Continuous compounding uses a natural log-based formula to calculate and add back accrued interest at the smallest possible intervals. Is it better to compound continuously … Continue reading What is the difference between compounded annually and compounded continuously?