Sorry for the simple question:
I understand and see how the limit goes to e in this example but I'm having trouble replicating the same result using an interest rate other than 100%. I'm sure I'm missing something simple....
Ex.
Interest rate of 8%.
Compounded monthly = (1 + (.08/12))^12 = 1.08299
Compounded daily = (1 + (.08/365))^365 = 1.08327
Compounded hourly = (1 + (.08/8760))^8760= 1.08328