Start with part of the formula for calculating an effective interest rate from a nominal one Assume
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Start with part of the formula for calculating an effective interest rate from a nominal one Assume that the interest rate, r is 10%, and use T =1, 2, 5, 10, 20, 50, 100, 200, 500, 1000, 5000 to calculate the corresponding value of X in each case. Produce a graph where you plot X on the y-axis and T on the x-axis. What do you notice happening as X is increasing and can you see what would happen as X rises to infinity?
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