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.

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.

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.
References in periodicals archive ?
Software cost can be justified by the savings from running for as little as a few hours on a production line," says Adam Dreiblatt, director of process technology at CPM Century Extrusion, who presented at the March 2014SPE Continuous Compounding TopCon.
The Society of Plastics Engineers (SPE) Continuous Compounding TopCon will have a novel program that includes the renowned CCT technical conference plus machinery demonstrations and tutorial sessons, it was announced by the SPE's Extrusion Division.
Case says that customers scaling up their operations often look to continuous compounding, rather than batch processing, to replace antiquated lines.
Society of Plastics Engineers, Continuous Compounding Topcon, Polymers Center for Excellence, Charlotte, NC, Lesley Kyle (203) 740-5452; www.
The same effect is found in continuous compounding tests on the twin-screw extruder.
The additive is said to find easy application in the continuous compounding of any type of base-polymer, and can be combined with other additives, as well.
Turnkey, custom-engineered batch or continuous compounding lines can be provided complete with upstream and downstream support equipment and customized automation.

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