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1) Continuous Compounding: Show that as m gets very large, (1+R/m) approaches eR. Use T=2 years, and R=5%. To do this calculate (1+R/m) for the

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1) Continuous Compounding: Show that as m gets very large, (1+R/m)" approaches eR. Use T=2 years, and R=5%. To do this calculate (1+R/m)" for the following values of m and compare your results to eRT. m 1 2 4 6 1 5 10 100 1,000,000

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