As n gets very large, interest is continuously compounded. Examine the graph of f(n)= (1 + ) n. The function has a horizontal asymptote. As n becomes infinitely.

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Presentation transcript:

As n gets very large, interest is continuously compounded. Examine the graph of f(n)= (1 + ) n. The function has a horizontal asymptote. As n becomes infinitely large, the value of the function approaches approximately …. This number is called e. Like , the constant e is an irrational number. n 1

Exponential functions with e as a base have the same properties as the functions you have studied. The graph of f(x) = e x is like other graphs of exponential functions, such as f(x) = 3 x. The domain of f(x) = e x is all real numbers. The range is {y|y > 0}.

The decimal value of e looks like it repeats: … The value is actually … There is no repeating portion. Caution