Some financial institutions offer continuous compounding.This means that
A)your effective yield will be about 20% higher than daily compounding.
B)your effective yield will be only slightly higher than daily compounding.
C)in reality they are offering only simple interest.
D)you must deposit at least $10,000 to open an account offering this feature.

Question

Quizplus · Accepted Answer

Continuous compounding may offer slightly higher effective yields compared to daily compounding, but it is not 20% higher. Simple interest is not the same as continuous compounding. The minimum deposit required was not stated in the question.

Some Financial Institutions Offer Continuous Compounding.This Means That