Sal continues to look at changing the length of compounding time, from daily to hourly compounding interest. Now he is able to show that compounding 100% annual interest converges on the number 2.71É or e as the number of compounding periods becomes a bigger and bigger number.

Concepts

the letter e, the alphabet, compound interest, euler's number, euler

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Additional Tags

compound interest, e, euler's number, math

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Classroom Considerations

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