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Hold the nominal-rate model constant
| Convention | Effective annual growth |
|---|---|
| 1 periods per year | 8% |
| 2 periods per year | 8.16% |
| 4 periods per year | 8.2432% |
| 12 periods per year | 8.3% |
| 365 periods per year | 8.3278% |
| Continuous | 8.3287% |
Read the continuous benchmark
The discrete factors approach exp(0.08) as the frequency increases. The comparison concerns these stated mathematical factors, not an offer that credits every moment under otherwise identical product terms.
Keep rate and horizon units matched
A continuously compounded annual rate multiplies a time horizon measured in years inside the exponential. A periodic rate belongs with a count of those same periods.
Check other terms before a real comparison
Fees, taxes, risk and access can alter a realised or net return. The higher gross factor in this table does not by itself determine the better real-world choice.