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Continuous compounding and e
This tutorial introduces us to one of the derivations (from finance and continuously compounding interest) of the irrational number 'e' which is roughly 2.71...
What interest is. Simple versus compound interest.
More on simple and compound interest
Compounding interest multiple times a year.
Compounding 100% annual interest continuously over a year converges to e (2.71...)
Continuously compounding $P in principal at an annual interest rate of r for a year ends up with a final payment of $Pe^r
Continuously compounding for multiple years.