Understanding Euler's Number: Its Significance & Definition

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SUMMARY

Euler's number, denoted as e, is defined mathematically by two primary expressions: e = lim_{n → ∞} (1 + 1/n)^n and e = 1 + 1/2! + 1/3! + 1/4! + ... . It serves as the base for natural logarithms and is crucial in solving the differential equation y' = y with the initial condition y(0) = 1. The significance of e extends to various fields, including finance and population growth, where it models continuous growth processes. The exponential function exp(t) is defined as e^t, establishing a foundational relationship in calculus and mathematical analysis.

PREREQUISITES
  • Understanding of limits and infinite series
  • Familiarity with differential equations, specifically y' = y
  • Basic knowledge of exponential functions and their properties
  • Concept of compound interest and continuous growth models
NEXT STEPS
  • Study the derivation of the exponential function from differential equations
  • Explore the applications of Euler's number in finance, particularly in compound interest calculations
  • Learn about the Taylor series expansion for e^x and its implications
  • Investigate the relationship between Euler's number and logarithmic functions
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Mathematicians, students in calculus, finance professionals, and anyone interested in the applications of exponential growth in various scientific fields.

derek181
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Can anyone give me a good definition of Euler's number and its significance. I see it everywhere, it's prolific in science and engineering.
 
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There are two standard definitions:

e = lim_{ n \to \infty} (1+\frac{1}{n})^n

e = 1 + \frac{1}{2!} + \frac{1}{3!} + \frac{1}{4!} + \ldots

The first one is the result of constructing a function, y = exp(t) that solves the differential equation

y = y'

with the initial condition

y(0) = 1

using Euler's method with step size 1/n and taking the limit as n goes to infinity.

Euler's method is glorified name for following a slope field (or vector field if the dimension is greater than 1) along to approximate a solution.

http://en.wikipedia.org/wiki/Euler_method

You could call this solution y = exp(t). It then turns out that exp(a+b) = exp(a)exp(b). This gives us a lot of information about the function. For example, exp(5) = 5exp(1) and 1 = exp(1-1) = exp(1)exp(-1), so exp(-1) = 1/exp(1). So, this is looking a lot like a function a^t. If you argue further along these lines, you see that that is indeed the case. So, we define e = exp(1). It then follows that e^t = exp(t), so this function, exp(t) that solves the differential equation turns out to be some number, which we call e, raised to the power t.

You can also interpret the limit using compound interest (or any form of growth with constant relative rate, like population growth). Khan Academy explains it well from this point of view, for example.

The 2nd formula for e solves the same differential equation, using power series, rather than Euler's method. The differential equation with initial condition determines a power series for e^x and when you plug in x = 1, you get the formula for e.
 
homeomorphic said:
For example, exp(5) = 5exp(1)

This can't be right...but I'm also not sure what you were going for with this equality...
 
Oops, I meant exp(5) = exp(1)^5.
 
homeomorphic said:
Oops, I meant exp(5) = exp(1)^5.


Ambiguous. You should write exp(5) = [exp(1)]^5

But there's nothing special about that since you're just saying x^5 = (x)^5
 
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Curious3141 said:
Ambiguous. You should write exp(5) = [exp(1)]^5

The equality posted by homeomorphic is perfectly clear and unambiguous. I'm not sure how you would interpret it in any other way.

But there's nothing special about that since you're just saying x^5 = (x)^5

You're missing his point. He did not define the exponential as ##\textrm{exp}(x) = e^x##. He defined the exponential as the unique function ##y## such that ##y^\prime = y## and ##y(0) = 1##. As such, saying that ##\textrm{exp}(5) = \textrm{exp}(1)^5## is not as trivial and actually serves to proving that the exponential function is of the form ##e^x## for some ##e##.
 
micromass said:
The equality posted by homeomorphic is perfectly clear and unambiguous. I'm not sure how you would interpret it in any other way.



You're missing his point. He did not define the exponential as ##\textrm{exp}(x) = e^x##. He defined the exponential as the unique function ##y## such that ##y^\prime = y## and ##y(0) = 1##. As such, saying that ##\textrm{exp}(5) = \textrm{exp}(1)^5## is not as trivial and actually serves to proving that the exponential function is of the form ##e^x## for some ##e##.

Yes, I see his point now.
 

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