Compound Interest and Mortgage Payments
Daily vs. Continuously Compounding Frequency Year-End Balance Annual Yield Daily $1,061.83 6.183% Continuously $1,061.84 6.184% Table:Interest rate at r = 6% with initial principal P(0) = $1;000 In most bank savings accounts, interest rate is compounded daily. The simple continuous compounding formula P(0)ert is a good approximation to daily ... ................
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