I want to calculate this expression:
(1 + 1 / math.inf) ** math.inf,
which should evaluates to e. However Python returns 1. Why is that?
=====UPDATE========
What I want to do here is to derive the effective annual rate from user's input, APR (annual percentage rate).
def get_EAR(APR, conversion_times_per_year = 1):
return (1 + APR / conversion_times) ** conversion_times - 1
I would want this expression to also apply to continuous compounding. Yes I understand I can write if statements to differentiate continuous compounding from normal cases (and then I can use the constant e
directly), but I would better prefer an integrated way.