For continuous compounding, you could plug in 999 compounding periods and the answer will come out essentially the same. Technically though, the formula then becomes e^rate - 1 (where e is the exponential function in your calculator). Note that using 999 compounding periods and 8% gives us an effective rate of 8.32836% and using the formula gives us 8.32871%.
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what number is m if the question asks for continuous compounding?
For continuous compounding, you could plug in 999 compounding periods and the answer will come out essentially the same. Technically though, the formula then becomes e^rate - 1 (where e is the exponential function in your calculator). Note that using 999 compounding periods and 8% gives us an effective rate of 8.32836% and using the formula gives us 8.32871%.
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