What is down the line of beauty, just underneath φ? It is, of course, e! By e! I don’t mean e factorial, but just e. e is a number of some confusing sort. e can be represented as:
e=lim x->infinity (1+1/x)^x
AAAAAAAAAAAAAAAAAAAAAAAAAAAA! Not to worry, it’s not as disgusting as it looks. Imagine it this way: you borrowed $100 from the author, and you have it for 1 year, and give it at the end of the year with 100% interest. You will give me 100(1+1) = $200 back.
Now imagine you paid quarterly for the year, with 25% interest. In the first quarter, that is $125, Halfway is $156.25, and at the end of the year, you have to pay me a tiny bit more that $244.14!!!!!
Tenthly (every 1.2 months) payment is a tiny bit more than $259.37. Now this is the crazy bit. You pay me every DAY, and I end up with more than $271.45. Phew! What if you paid me ALL THE TIME NON-STOP?!?! Then you will give me a little more than $271.82, or $100e!
That will give me $171.82 more than what I had before. Yeees, I’M RICH!!!!!! I AM SO TOTALLY THE RICHEST PERSON IN THE WORLD!!!!!!
Says you.Money critic
Yes, THANK YOU! e isn’t just used in financial maths, but also in other stuff. Stick around …