Read the formula and variables
rₛ is a continuously compounded rate per year and T is measured in years.
| Input | Meaning |
|---|---|
| rₛ | Continuous annual rate |
| T | Years between dates |
| e | Exponential-function base |
Check a stated example
An amount 5,000 at a 9% continuous rate for two years grows to approximately 5,986.0868.
The amounts in the example are synthetic. Keep the original precision through the calculation and round only the displayed result.
Check the domain and timing
Do not substitute a nominal discrete quote without stating the changed convention. The continuous benchmark is a model comparison, not a product offer.
A changed date, payment pattern or quotation convention can require a different expression even when the numbers look similar. Identify those features before calculating.