Continuously compounded growth rate
Continuous growth keeps the trajectory perfectly in sync with your current amount. Read the article on e for more details (e is a special number, like pi, and is roughly 2.718). If we have rate r and time t (in years), the result is: If you have a 50% APR, it would be an APY of e.50 = 64.9% if compounded continuously. That’s a pretty big difference!