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4 votes
Continuous compounding is an

extremely bad problem for
A. investments
B. debt
C. savings

User Rajath M S
by
7.6k points

1 Answer

1 vote

Answer:

B. debt

Explanation:

Continuous compounding is the most aggressive form of compounding, where interest is compounded an infinite number of times throughout a period. This means that investors earn interest on their interest, which can lead to significant growth over time. However, continuous compounding is also bad for debt, as it means that borrowers pay interest on their interest, which can make it difficult to get out of debt.

User Igor Liferenko
by
7.6k points