Continuous compounding and e

6 videos
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...

Introduction to interest

VIDEO 9:56 minutes
What interest is. Simple versus compound interest.

Interest (part 2)

VIDEO 8:01 minutes
More on simple and compound interest

Introduction to compound interest and e

VIDEO 10:11 minutes
Compounding interest multiple times a year.

Compound interest and e (part 2)

VIDEO 10:14 minutes
Compounding 100% annual interest continuously over a year converges to e (2.71...)

Compound interest and e (part 3)

VIDEO 10:04 minutes
Continuously compounding $P in principal at an annual interest rate of r for a year ends up with a final payment of $Pe^r

Compound interest and e (part 4)

VIDEO 8:04 minutes
Continuously compounding for multiple years.