Section 3.1: The Constant e and Continuous Compound Interest

The number e

e = limn → ∞(1 + 1/n)nor, alternatively,e = lims → 0(1 + s)1/s

Both limits are equal to 2.718 281 828 459 ...

Drag the slider to see the value of this expression for different values of s.

s = 1

Simple, Compound, and Continuous Compound Interest


See the difference between simple and continuously compounded CD (certificate of deposit) rates for Goldman Sachs Bank.

Drag the sliders to change the annual interest rate r and the number m of interest compounding periods per year.

r = 100%

m = 1