a) Using an interest rate of R=4% and T-2, show that as m becomes very large,...

 

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a) Using an interest rate of R=4% and T-2, show that as m becomes very large, that (1+R/m) approaches eRT (Just make m very large on a spreadsheet). b) Using an Rm of 5% and m = 10 check that the two formulas on the Conversion Formulas slide are correct. (First calculate R- and then recalculate Rm using the Re you just obtained). a) Using an interest rate of R=4% and T-2, show that as m becomes very large, that (1+R/m) approaches eRT (Just make m very large on a spreadsheet). b) Using an Rm of 5% and m = 10 check that the two formulas on the Conversion Formulas slide are correct. (First calculate R- and then recalculate Rm using the Re you just obtained).