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The Mathematics of Compound Interest: Continuous vs. Periodic Models

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Alex Morgan, CFA
• Published: October 8, 2026 • 9 min read
The Mathematics of Compound Interest: Continuous vs. Periodic Models

Understanding how compounding frequency impacts your effective annual rate (EAR) is fundamental to both wealth building and debt payoff.

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Alex Morgan, CFA

Financial Contributor & Analyst

Financial writer and researcher specializing in banking products, consumer credit, and long-term investing strategy. Verified by the FinBank Editorial Board.

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