[ e = lim_ m to infty left(one + frac 1 m appropriate)^m ] With continuous compounding, the amount of moments compounding takes place for every period approaches infinity or n → ∞. Then utilizing our primary equation to unravel for any as n → ∞ we want to resolve:
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. To really make it glance much more equivalent so we are able to do a substitution we introduce a variable m these that m = n/r then we even have n = mr. Note that as n methods infinity so does m. Changing n in our equation with mr and cancelling r within the numerator of r/n we get:
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