Stop Explaining *e* with Compound Interest
Math classes often introduce the natural constant *e* using compound interest: a 100% annual interest account doubles with yearly compounding, becomes 2.25 times with semi-annual compounding, approximately 2.714 times with daily compounding, and exactly *e* times with continuous compounding. However, this is misleading. Compound growth is exponential, but the example uses linear division of compounding periods. Banks must separately publish the interest rate, compounding interval, and annual percentage yield. There are far more elegant ways to introduce *e*, such as its unique property of being its own derivative, or its crucial role in Euler's formula. These approaches don't require prior knowledge of *e* and are mathematically more rigorous.