In order to determine e we will start with the simplest description
of growth and gradually work your way up in the logic, making sure the above
conditions are satisfied.
To do this, we take the most simplistic view of growth, and gradually
reduce the time intervals. So in the next example, the same situation is
portrayed each time, that is, every formula happens over the same time span
but we gradually make the slices smaller (so we need more of them).
From what we observed before, this will result in the growth factor becoming
smaller.
Remember that to idealise the relationship between growth factor and number
of time-intervals, we will equal the growth factor change to the times-interval
change.
Imagine a unit (1) that grows by its own size (doubles) over a given time
span
time
interval is 1, growth factor is 1
To represent growth more accurately, we gradually increase the time intervals
and proportionally diminish the growth factors:
time
interval is 2, growth factor is 1/2
time
interval is 3, growth factor is 1/3
time
interval is 4, growth factor is 1/4
time
interval is 5, growth factor is 1/5
and so on ...
The curve becomes exponential (as is characteristically the case where
powers are involved).
As you can see, to represent continuous growth, the time intervals will
become infinitely small which results in an infinite amount of time intervals.
Also, the growth factor will become infinitely small at each time interval.
Mathematically we can represent this as
e is the limit reached when n gets infinitely
large in the idealised formula of growth.
Note that this limit can never be actually reached, the infinite series
of numbers that e represents stands testimony to this.
e is irrational, because it can't be expressed as a
ratio of whole numbers.
e is transcendental because it is can't be produced
using the standard algebraic computations (it transcends them).
The larger n, the more accurate growth is portrayed and the more
accurate the number e will be. For example, for n=1000, e = 2.716923...
which is accurate to 2 decimal digits.
So whenever growth needs to be represented in a formula, the best mathematicians
can do is to make that entity interact with e which automatically
indicates that some continuity is present in this entity.
Just as 5m gives a concrete measure of length to the number 5,
e5gives a measure of growth to the number 5 (more on that
later).
This continuity can only be approximated using our current mathematical
tools by using the concept of infinity. We slice up the entity into an infinite
amount of slices.
Although we have used time as an example of continuity, when you think
about it, virtually everything in life has continuity. It is easy to see
why some mathematicians, such as Newton and Leibniz, developed a thorough
study of the fundamental concept that continuity depends on, change,
in the Integral and Differential Calculus