Understanding the Limit of (1+1/n)^n as n Goes to Infinity

In summary, The expression Lim as n goes to infinity of (1 + 1/n)^n tends toward e, not 1, due to the fact that the base is getting closer to 1, but the exponent is getting larger and larger. This is an indeterminate form limit.
  • #1
moo5003
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I'm studying for the GRE that's coming up in a week or two and I came across a problem where the answer given in the book does not make sense to me and I was wondering of someone here could explain it to me.

Question:

Lim as n goes to infinity of X_(n+1) / X_n

Where X_n = n^n / n!

Answer:

So I started by simplifying the expression down to:

Lim as n goes to infinity of (1 + 1/n)^n

The book informs me and by some proofs online that this tends toward e. However I was hoping someone could explain this to me because from my point of view it should just hit 1.

Since 1/n -> 0, 1+0 = 1, and 1^n is 1 for any arbitrarly high power.
 
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  • #2
Use the binomial theorem on (1 + 1/n)^n and see what happens to each term as n becomes infinite. You will end up with the power series for e.
 
  • #3
So, using binomial expansion we get:

Lim_n^Inf of
Series m=0 to n

(1)^(n-m) * (1/n)^m * nCm

Note: nCm = n!/[m!(n-m)!]

I'm a little unsure how to simplify this. Obviously from your response I'm looking to simplify this to 1/m!.

Assuming I can pass the limit through the series (unsure of this) we get:

Series m=0 to Infinity
Lim_n^Inf of
(1/n)^m * n!/[m!(n-m)!]

What next?
 
  • #4
Bump* Just wanted to see if anyone could clarify this question for me.
 
  • #5
moo5003 said:
I'm studying for the GRE that's coming up in a week or two and I came across a problem where the answer given in the book does not make sense to me and I was wondering of someone here could explain it to me.

Question:

Lim as n goes to infinity of X_(n+1) / X_n

Where X_n = n^n / n!

Answer:

So I started by simplifying the expression down to:

Lim as n goes to infinity of (1 + 1/n)^n

The book informs me and by some proofs online that this tends toward e. However I was hoping someone could explain this to me because from my point of view it should just hit 1.

Since 1/n -> 0, 1+0 = 1, and 1^n is 1 for any arbitrarly high power.

I thought it would be worthwhile to jump in here and point out that your analysis is faulty in the line just above. Yes, it's true that 1/n --> 0 as n gets large, and 1^n is 1 for any arbitrarily large finite power, but this is not the way limits work. The limit process applies to the whole expression, not just a bit here and another bit there later on.

The point is that, although 1/n --> 0 in the limit, for any finite value n, 1/n is not zero, so for the same value of n, (1 + 1/n) ^ n is not 1^n.

So while the base is getting closer to 1, the exponent is getting larger and larger. This type of limit is one of several that are called indeterminate forms. I'm reasonably sure you can do a search on wikipedia to find a page with more information. They are called indeterminate because you can't determine at a glance what their limits will be.
 

FAQ: Understanding the Limit of (1+1/n)^n as n Goes to Infinity

What is the limit of (1+1/n)^n as n goes to infinity?

The limit of (1+1/n)^n as n goes to infinity is the mathematical constant e, also known as Euler's number. It is approximately equal to 2.71828.

Why is the limit of (1+1/n)^n as n goes to infinity equal to e?

This limit can be derived using the concept of continuous compounding in calculus. As the value of n approaches infinity, the expression (1+1/n)^n approaches the value of e.

What does the expression (1+1/n)^n represent?

This expression represents the compound interest formula with a continuously compounded interest rate of 100%. It can also be interpreted as the value of an investment after n periods of continuous compounding.

What is the significance of the limit of (1+1/n)^n as n goes to infinity?

The limit of (1+1/n)^n as n goes to infinity is a fundamental concept in mathematics and has many real-world applications, including in finance, biology, and physics. It is also an important constant in the study of exponential growth and decay.

How can the limit of (1+1/n)^n as n goes to infinity be calculated?

The limit can be calculated using a variety of methods, including using the definition of a limit, using the binomial theorem, or using the natural logarithm function. However, most commonly, it is derived using the concept of continuous compounding in calculus.

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