The mathematical upper bound on compounding.
A worked example
Starting figures
- Starting balance
- $10,000
- Annual rate
- 5%
- Years
- 10
What it returns
- Ending balance
- $16,487
- Vs annual compounding
- $198
- Formula
- Pe^(rt)
How to read the results
With the defaults above, ending balance works out at $16,487.