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How does continuous compounding benefit an investor?
The effect of enhancing the number of compounding periods per year is to increase the future value of the investment. The more often interest is compounded, the larger the future value. The minimum compounding period is used when we do continuous compounding--compounding that takes place every tiny unit of time (the smallest unit of time imaginable).
Ask question Open Quick Links Quick Links Page Landmarks Content Outline Keyboard Shortcuts Global Menu Top Frame Tabs My UMass Amherst Tab 1 of 2 (active tab) Help & Resource
Yield Yield represents the actual return on the investments. Different types of yield are discussed below: Coupon Yield: The fixed interest rate on a government security or
Management of Sundry Debtors: SUNDRY - Miscellaneous infrequent or small customers that are not given individual ledger accounts but are classified as a group. SUNDRY CREDI
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