Re:Ask HN: What's the most valuable thing you can learn in a...
by maire on Wednesday November 20, 2019 @09:59AM
(#21584430)
The way I look at it is compounding just changes the effective interest rate.
Continuous compounding is e^rt. Just subtract straight interest from this and you discover the maximum return of compounding over just collecting interest. Most compounding periods are much less than continuous.
Continuous compounding is e^rt. Just subtract straight interest from this and you discover the maximum return of compounding over just collecting interest. Most compounding periods are much less than continuous.
I think this would take less than an hour. ;-)