J
joelee88
Member
Hi guys, just have a question about Force of Interest that has been bugging me since yesterday.
If you refer to the Acted CT1 course note, on page 12, Section 2.1:
It gives the formula i^(p) = p[(1 + i)^(1/p) - 1]
It then says when p approaches infinity, the limit will be 0.0488 (as per the graph shown).
Well from my understanding, if p approaches infinity, we "substitute" infinity in the formula i^(p) = p[(1 + i)^(1/p) - 1], which will then give i^(infinity) a value of 0, am I correct? Is that is so, why is 0.0488 the limit and not 0 instead?
Thanks a lot in advance for your help.
If you refer to the Acted CT1 course note, on page 12, Section 2.1:
It gives the formula i^(p) = p[(1 + i)^(1/p) - 1]
It then says when p approaches infinity, the limit will be 0.0488 (as per the graph shown).
Well from my understanding, if p approaches infinity, we "substitute" infinity in the formula i^(p) = p[(1 + i)^(1/p) - 1], which will then give i^(infinity) a value of 0, am I correct? Is that is so, why is 0.0488 the limit and not 0 instead?
Thanks a lot in advance for your help.