Ascetic Anchorite said:
I do not know why the time constant is significant. Why is 63.2% significant?
The time constant tells you the shape (how sharply curved it is) of the exponential charging curve--it gives you a handy measure of how fast the capacitor will charge. Examine that charging equation again. Let's say that the time constant RC = 10 seconds. That means that 10 seconds after you apply the voltage, the fraction of charge on the capacitor will be:
1 - e^{-(10/10)} = 1 - e^{-1} = 1 - 0.368 = 0.638
That means it will have 63.8% of its final (total) charge.
What about after 20 seconds (2 time constants)? The fraction of charge will be:
1 - e^{-(20/10)} = 1 - e^{-2} = 1 - 0.368*0.368 = 0.865
thus 86.5% charged.
As time goes on, each additional second adds less and less total charge.
Is the rate of charge linear up until that point and then exponential afterwards?
No. It's always exponential. (Note that the charging equation takes the form of 1 minus a decreasing exponential.)
What purpose does it serve? Why not just look at what the 100% charge time is, instead of messing around with 63.2% figures?
Once you understand how the exponential function works, you'll see that it takes
forever to get to 100% charge. So that's not very useful. Much more useful is a measure of how fast it takes to get to a certain percentage of the final charge. 63.2% is just used because it appears when the exponential term has the mathematically simple form of 1/e. (Mathematicians like simple exponents like -1.

) You could use a different number such as the time it takes to get to 90% charged (which would be some multiple of the standard time constant, about 2.3*RC).
Read more about charging capacitors and time constants here: http://hyperphysics.phy-astr.gsu.edu/hbase/electric/capchg.html"