## Thinking Mathematically (6th Edition)

The statement does not make sense. If a bank increases the number of compounding periods per year indefinitely, this is called continuous compounding. There is a simple equation to calculate the value of an investment with continuous compounding. $A = P~e^{rt}$ Although this kind of compounding interest is a good investment for customers, from this equation, we can see that the bank does not need to give an infinite amount of money.