Ans :
The extreme frequency of compounding is continuous compounding where the
interest is compounded instantaneously. The factor for continuous compounding for
one year is eAPR where e is 2.71828 the base of the natural logarithm. The future
value of an amount that is compounded for n years is
FV = PV x e^kn
Where k is annual percentage rate and ekn is the compound factor.
