Sure, its true, but you completely missed the point. Pi is the ratio between circumference and diameter shared by all circles. It is a fundamental ratio inherent in all circles and therefore impacts any calculation of circumference, area, volume, and surface area for circles, spheres, cylinders, and so on.
This 22 cents gets added to Mr. Red, who now totals 33 cents. And Mr. Red, who started at 11 cents, has earned 4 cents (33.11) on his own, creating Mr. Can We Get Infinite Money? Why not take even shorter time periods? How about every month, day, hour, or even nanosecond? Will our returns skyrocket? Our return gets better, but only to a point.
Save your rigorous math book for another time. Heres a quick video overview of the insights: e is NOT Just a Number, describing e as a constant approximately 2.71828 is like calling pi an irrational number, approximately equal to 3.1415.
Green gives 11 cents to Mr. Red. Between months 8-12 Mr. Green gives 22 cents to Mr. Red, since Mr. Green was at 66 cents during Month 8. If we expanded the chart, Mr. Money Changes Everything But money is different. As soon as we earn a penny of interest, that penny can start earning micro-pennies of its own. We dont need to wait until we earn a complete dollar in interest fresh money doesnt need to mature.
But this doesnt help beginners trying to get a handle on a subject (and we were all a beginner at one point). No more! Today Im sharing my intuitive, high-level insights about what e is and why it rocks.