🔗 Bernoulli discovered e by studying a question about compound interest

🔗 Mathematics

The number e is a mathematical constant approximately equal to 2.71828 and is the base of the natural logarithm: the unique number whose natural logarithm is equal to one. It is the limit of (1 + 1/n)ⁿ as n approaches infinity, an expression that arises in the study of compound interest. It can also be calculated as the sum of the infinite series

${\displaystyle e=\sum \limits _{n=0}^{\infty }{\frac {1}{n!}}={\frac {1}{1}}+{\frac {1}{1}}+{\frac {1}{1\cdot 2}}+{\frac {1}{1\cdot 2\cdot 3}}+\cdots }$

The constant can be characterized in many different ways. For example, it can be defined as the unique positive number a such that the graph of the function y = a^x has unit slope at x = 0. The function f(x) = e^x is called the (natural) exponential function, and is the unique exponential function equal to its own derivative. The natural logarithm, or logarithm to base e, is the inverse function to the natural exponential function. The natural logarithm of a number k > 1 can be defined directly as the area under the curve y = 1/x between x = 1 and x = k, in which case e is the value of k for which this area equals one (see image). There are alternative characterizations.

e is sometimes called Euler's number after the Swiss mathematician Leonhard Euler (not to be confused with γ, the Euler–Mascheroni constant, sometimes called simply Euler's constant), or as Napier's constant. However, Euler's choice of the symbol e is said to have been retained in his honor. The constant was discovered by the Swiss mathematician Jacob Bernoulli while studying compound interest.

The number e has eminent importance in mathematics, alongside 0, 1, π, and i. All five of these numbers play important and recurring roles across mathematics, and these five constants appear in one formulation of Euler's identity. Like the constant π, e is also irrational (i.e. it cannot be represented as ratio of integers) and transcendental (i.e. it is not a root of any non-zero polynomial with rational coefficients). The numerical value of e truncated to 50 decimal places is