Continuous Compounding

Compute (1 + 1/n)ⁿ for larger and larger n and watch it climb toward e:

• n = 1: 2.000
• n = 10: 2.594
• n = 100: 2.705
• n = 10,000: 2.71815

The values inch up toward e ≈ 2.71828 but never pass it. That ceiling is the limit of continuous compounding — the very definition of e.