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 ?
Rubber can, in principle and practice, be compounded in a number of different continuous compounding machine designs.
The objective of this study was to explore continuous compounding for fluoroelastomer based compounds.
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.
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.
The principle applies equally well to continuous compounding as it does to batch.
If the number of compounds is low, and the base polymer is common to most or all of the formulations, it may be possible to consider continuous compounding, using one or more of the available technologies.
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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