Also called Euler's number after the Swiss mathematician Leonhard Euler,

**e**is different from γ, the Euler–Mascheroni constant, which is sometimes called simply Euler's constant. The natural logarithm, or logarithm to base**e**, is the inverse function to the natural**exponential**function.Beside this, what is E in continuous compound interest formula?

In the

**formula**, A represents the initial amount in the account.**Continuously Compounded Interest**is a great thing when you are earning it!**Continuously compounded interest**means that your principal is constantly earning**interest**and the**interest**keeps earning on the**interest**earned!What is the importance of the number e?

The number

**e**is a famous irrational number, and is one of the most**important**numbers in**mathematics**. It is often called Euler's number after Leonhard Euler (pronounced "Oiler").**e**is the base of the Natural Logarithms (invented by John Napier).**e**is found in many interesting areas, so it is worth learning about.Is compounded daily the same as compounded continuously?

With

**daily compounding**, the total interest earned is $1,617.98, while with**continuous compounding**the total interest earned is $1,618.34. The difference between the two is only $0.36. Not much more is earned when**compounding**an infinite amount of times versus**compounding**just 365 times.