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

  1. Nov 23, 2006 #1

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


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


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  4. Nov 23, 2006 #3


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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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