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According to Investopedia, even with very large investment amounts, the difference in the total interest earned through continuous compounding is not very high when compared
According to Investopedia, even with very large investment amounts, the difference in the total interest earned through continuous compounding is not very high when compared to traditional compounding periods. We are going to test this theory. Suppose $15,000 is invested in an account with an annual interest rate of 3.78%, compare the account balance after one year when interest is compounded quarterly, daily, and continuously.
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