CONTINUOUS VERSUS DISCRETE INTEREST ◆ DISCRETE INTEREST Finite(and small Number of compounding Intervals ◆ CONTINUOUS INTEREST Interest Compounded Continuously- Limiting Case as the Compounding Interval Becomes Small(say daily or less) 10/1599 Engineering economics 110/15/99 Engineering Economics 1 13 CONTINUOUS VERSUS DISCRETE INTEREST t DISCRETE INTEREST Finite (and Small) Number of Compounding Intervals t CONTINUOUS INTEREST Interest Compounded Continuously - Limiting Case as the Compounding Interval Becomes Small (say daily or less)