The sequence that defines the number e

A celebrated application of the theorem on bounded monotone sequences: the sequence $(1+1/n)^n$ is increasing and bounded above, and its limit is Euler’s number $e\approx 2{,}71828$. The section also shows its financial meaning (continuous compounding) and the graph that converges to the line $y = e$.

• The number e as a limit of a sequence
• Financial and graphical meaning