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Alabama Notice Continuous Interest  Form

Alabama Notice Continuous Interest Form

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compounding interest continuously so sometimes when we compound interest what we do is actually compound it continuously which means the minute you the second you compound interest you then recalculate it so we could either compound a certain number of times so either every month day week whatever it is or continuously which basically is boom boom boom so on and so forth every Split Second you're recalculating and when we're using continuously we have a different formula okay it's what I call the formula a equals P to the RT okay a is your ending amount p is your principal or the amount you started with e is the same e as natural log so 2.7 so on and so forth R is your rate which is going to be expressed as a decimal so if you had 5% it'd be 05 and time is the amount of time you have your investment in years so per AAL P RT we use this whenever we are calculating interest that has been compounded continuously

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