Application of the Euler Sequence in Continuous Compounding
Okorie, Kalu Okam *
Department of Mathematics and Computer Science, Ebonyi State University, Abakaliki, Nigeria.
Jamiu, Garba
Department of Mathematics, Federal University of Technology, Minna, Nigeria.
A. M. Mamu
Department of Statistics, Federal University of Technology, Minna, Nigeria.
Bello, Ridwan Oluwaseun
Department of Mathematical and Computer Sciences, Fountain University, Osogbo, Nigeria.
Suleiman, Saminu Kanti
Department of Business Administration, Ecole Superieure Sainte Felicite, Cotonou, Benin.
*Author to whom correspondence should be addressed.
Abstract
In this paper, the Euler number e, the Euler sequence and its application in real life situations particularly in business world ( financial investment ) are discussed. A basic theorem concerning convergence of the Euler sequence in which some lemmas were considered in order to achieve the proof of the theorem is presented. The paper showed the application of the Euler sequence in continuous compounding and the development of a new formula (INTEREST FORMULA) in continuous compounding. To achieve this, the convergence of the Euler sequence to the Euler number e was established and finally, its application in continuous compounding and some striking examples are shown.
Keywords: The Euler number, the Euler sequence, continuous compounding