I am having a question regarding the usage of the EFFECT() function in Microsoft Excel.
I know the basic concept of the function, and I have no issue with it when there are pre-defined compounding periods per year.
As you can see in the picture, when the periods are "fix", the usage of this function is obvious.
And here comes my problem. I would have to use this function precisely, in order to count the effective rate, BUT when the periods are not a fix number, but it is continous, so basically n --> infinite.
Now, this is a problem, because infinite is not a number. And you can't really tell Excel this, if my knowledge serves me right.
What would you guys do, in order to get the correct answer, when the period (n) is continuous, and NOT a fix number?
This is my precise problem that I would need to do with the EFFECT() function: https://i.stack.imgur.com/fF01a.png
As you can see, I did everything when 'n' was a fix number. But I also need to do it when it is continous. And I have no idea what to do in this case. Our professor only gave us this little symbol that n --> infinite. Which is cool, I understand, but don't know how to handle this with the EFFECT() function.
Thank you for your help!