Continuous compounding involves charging interest or discounting future receipts on a continuous basis. It is fundamental in finance and economics for the accurate measurement of growth and value.
The Rule of 69.3 is a financial formula that uses the precise natural logarithm of 2 to provide a more accurate method for estimating the doubling time of an investment under continuous compounding.
An in-depth exploration of continuous compounding, its definition, mathematical formula, historical context, and practical applications in finance.
