Subtype of Compounding

The earned interest amount should be capitalized continuously over time.
Formally, the interest amount I earned during any time period with length t is given by the formula I = Neʳᵗ - N
N is the notional at the begining of the accrual period
r is the applicable fixed rate
t is the length of the accrual period in number of years according to some given DayCount convention.