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How to work out the effective annual rate if you ocmpound 6% nominal for indefinite

  1. Nov 23, 2006 #1
    periods.

    Like (1+6%/100)^100-1=0.061817441

    (1+6%/1000)^1000-1=0.061834635


    does it converge to a limit of like 0.06184 or something like that?
     
  2. jcsd
  3. Nov 23, 2006 #2

    DrGreg

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  4. Nov 23, 2006 #3

    HallsofIvy

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    And for x= 0.06, that limit is e.06-1.
     
  5. Nov 24, 2006 #4
    how would you solve that limit would you use l'hopitals or something like that?
     
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