What is e (2.718…) and why does it literally appear everywhere?
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Here is another definition. Let’s assume there is a saving account that gives you 100% interest rate a year. You put £100 and take £200 at the end of the year.
* Now assume, they give you 50% interest rate for 6 months. You first put all your money and make £150 in the 6th month and put it all again to the bank. At the end of the year, you make £225.
* What would happen if the interest rate was 25% for 3 months, every quarter? You would make, first £125, then £156.25, £195.3125 and £244.1406 at the end of each quarter.
* If you make the same calculation for every 1 month with an interest rate of (100/12)%, you would make £261.3035 at the end of the year.
* If you assume a daily interest rate of 100/365%, you would make £271.45674… at the end of the year.
If you continue dividing a whole year into the smallest time interval you can take, you will converge to this number e = 2.718… This is where the number e comes from.
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