Derivation of e; How Do We Find e? — IB Mathematics SL/HL AA/AI | MÜNSCI

In this lesson, we derive e using the compound interest formula given to us on the IB mathematics formula sheet.

**Note that there were 2 notation/clarification mistakes in this video**

1) At 4:21, the power to which the equation was raised to is a substitution of the variable k, NOT n. The value for n was ignored, given that it was 1 year. This means that for whatever value k, as n = 1, k*n = k*1 = k. Therefore, we did not need to take n into account for the purpose of this video. Nevertheless, if you were working with a timespan of more, or less than 1 year, you would have to take n into account.

2) At 8:49, the equation is not equal to e, but is roughly e (a squiggly equals sign should have been used). Should we have used the limit where k approaches infinity, the equation would have been equal to e.

*note: MUNSCI and MÜNSCI (difference between U and Ü) can be used interchangeably when referring to the Munich Organization of Science, given that it is an international initiative.

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