Calculus

Why Does 0/0 Have an Answer?

What it means to approach a value without reaching it, and why the number e shows up in compound interest.

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What to remember

  • A limit is about the approach, not the destination: f(a) can be undefined while the limit exists.
  • Limits exist only when both one-sided limits agree; they fail via jumps, blow-ups, or oscillation.
  • The limit (1 + 1/n)^n → e is the foundation of continuous compounding and appears throughout pricing theory.
Read the lessonLimits, with a checkpoint at the end.