Financial

continuous compounding

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Continuous compounding

The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Continuous Compounding

Describing interest that accumulates on a constant basis. That is, if a loan has continuous compounding interest, the interest accumulates all the time, which means that the interest added to the loan balance also begins earning interest on itself. In the short and medium term, this has almost the same yield as daily compounding interest but over the long term, the continuous compounding interest can earn much more. Albert Einstein was once reported as saying that there is no more powerful force in the universe than continuous compounding interest. See also: Compounding.
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continuous compounding

Compounding of interest using the shortest possible interval of time. Although continuous compounding sounds impressive, in practice it results in virtually the same effective yield as daily compounding.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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References in periodicals archive
The main objective is to produce powdery free-flowing rubber/filler batches (powder rubber, PR) which allow the introduction of a continuous compounding process in the rubber industry in the medium- to long-term future.
1 and 3) and render continuous compounding processes possible, special attention is to be focused on the viscosity of the NR latex used in the powder rubber.
The extruder is presently used for industrial process studies and has been slated specifically for a new study on the continuous compounding of robber at the German Institute for Rubber Technology.
In considering a continuous compounding system for the silicone sealant, these key elements can be redefined in terms of unit operations.
Burbank, "Continuous compounding technology for the rubber industry," The Northwest Regional Rubber and Plastics Exposition, September 21-22, 1994.
The principle applies equally well to continuous compounding as it does to batch.
Up to this point, the energy costs associated with converting rubber in bale form into particles or granules for feed to a continuous mixer have not been justified by process or quality improvements gained through continuous compounding.
While it is our conviction that continuous compounding will play an increasing role in rubber compounding in the coming years as more polymers become available in crumb form and solution, addition of structural modifiers becomes more prevalent, the practical reality is that the vast majority of today's polymers remain available only in bale form, or in chips too large for small volume continuous compounding.
arm of the Italian manufacturer of batch and continuous compounding machinery, has taken several steps in the past year to increase its ability to serve North American plastics processors.
This is a continuous compounding system, as opposed to a batch compounding system.
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