Stop using e for compound interest

Stop using e for compound interest ​ In a typical math class, e is introduced like this: Imagine a bank account with 100% yearly interest. This means that anything you deposit will be doubled a year later. The bank decides to compound interest twice yearly, instead of once per year. Then, every 6 months, your deposit will increase by 50%, letting you leave with 2.25 x the amount you put in. the amount you put in. The bank now decides to compound interest daily, meaning that your deposit will increase by 100 365 % 365 times. After a year, you can leave with approximately 2.714 x . 365 times. After a year, you can leave with approximately . Finally, the bank compounds interest continuously, letting you leave with exactly e times the amount you put in after a year. This makes sense mathematically, and in class, e = lim n → ∞ ( 1 + 1 n ) n . But here's the problem: why is compound interest divided linearly even though the growth is exponential? If a bank account has 100% yearly inte ... Read full article.