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

1. Nov 23, 2006

### JimmyJockstrap

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. Nov 23, 2006

### DrGreg

3. Nov 23, 2006

### HallsofIvy

And for x= 0.06, that limit is e.06-1.

4. Nov 24, 2006

### JimmyJockstrap

how would you solve that limit would you use l'hopitals or something like that?