Work out continuous compounding instantly with clear inputs, formula shown and shareable results.
Continuous compounding is the limit as compounding frequency goes to infinity, giving A = Pe^(rt). It is the standard convention in derivative pricing because it makes rates additive across periods.
Continuous growth
A = P·e^(rt); EAR = e^r - 1
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
No, but it is a clean upper bound and the natural convention for modelling.
Very little — at 8% the difference is around 0.03 percentage points of annual yield.