'Well, not so long ago (say 10yr) inflation and exchanges rate variations in some east-European countries (like Poland) were extremely high. Financial calculations at that time could not rely on approximations!'the article I was reading only dealt with APY...
cheers, that helps a lot.
I was reading about compound interest and continually compounded interest(APY) and e kept on coming up, and specifically this expression if the effective interest rate is at 100%(obviously won't occur in real life, but very interesting for study).
Is it possible to evaluate the limit definition of e:
lim (1+1/n)^n ?
n->INF
I have seen approximations using binomial theorem, but I am curious as to if the limit could be rearranged and evaluated using L'hopital for instance.
thanks