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Okay, I think you're right here. But then why when I calculate compound interest, it's (1+rate)^time ?
by rabidrat 7y ago
Okay, I think you're right here. But then why when I calculate compound interest, it's (1+rate)^time ?
- maxerickson 7y agoThe infection is continuously compounding. This video is hand wavy, but it shows the relationship: https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/cont-comp-int-and-e/v/continuously-compounding-interest-formula-e https://www.khanacademy.org/economics-finance-domain/core-fi...