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An Intuitive Introduction to Limits and Continuity

Let's try to understand the concepts of limits and continuity with an intuitive approach. In this page I'll
introduce briefly the ideas behind these concepts. These ideas are explored more deeply in the links
below.

The Idea of Limits of Functions


When we talked about functions before, we payed attention at the values of functions at specific points.
For example, the value of f(x) at x=1.

The idea behind limits is to analyze what the function is "approaching" when x "approaches" a specific
value. To start getting used to this idea, let's turn to this graph:

When x approaches the value "a" in the x axis, the function f(x) approaches "L" in the y axis. In this
graph I drawed a big pink hole at the point (a,L). I do this because we don't necessarily know the value
of function f at x=a.

Let's turn to the graph of a function whose expression we know:


This is the function f(x)=x 2 . Let's focus on the point (1,1). We can see from the graph that when x
approaches 1, the function f(x) approaches 1. When this happens, we say that:

This is read "the limit as x approaches 1 of x squared equals 1".

Why Limits are Useful


You might ask what this is useful for. Very good question. Why would you need to know what the
function is approaching? You already know the function equals 1 when x equals 1, right?

Well, the point is that sometimes we don't care what the function is at x=1.

As an example of this, let's consider the following function:

Don't let this notation intimidate you! This only means that this function equals x 2 when x is anything
other than 1, and equals 0 when x equals 1. This function is the same as the one we saw before, but in
this case it has a "hole" at x=1. Let's see what the graph looks like:
What does the function approach when x approaches 1? It also approaches 1, right? It doesn't matter that
the function is other than 1 at that point! So,

In calculus, the most useful limits are like this one. The value of the function at the specific point we
care about is not defined, like 0/0 (which is complete junk), or useless, like zero or infinite.

In these cases we can know what the function is approaching, and that is what we really need. To learn
more:

Learn more about the intuitive idea behind limits


Learn how to solve limits

The Idea of Continuous Functions


Limits and continuity are often covered in the same chapter of textbooks. This is because they are very
related. The basic idea of continuity is very simple, and the "formal" definition uses limits.

Basically, we say a function is continuous when you can graph it without lifting your pencil from the
paper. Here's an example of what a continuous function looks like:
There is a precise mathematical definition of continuity that uses limits, and I talk about that
atcontinuous functions page. Intuitively, this definition says that small changes in the input of the
function result in small changes in the output.

If you are confused by that, ignore it! You don't need to learn all at once. The most important is to
recognize a continuous function when you see it.

Now, what would a discontinuous function look like? A function essentially is discontinuous when it has
any "gap". For example:
Learn more about limits and continuity:

The Intuitive Approach to The Limit of a Function


The concept of limit of a function is the most important one of all calculus. Learn how to solve limit
problems and understand what you are doing!

Solving Limits Made Simple: Solve Any Limit You May Find
This page is the ultimate resource for solving limits. I prepared a list of all possible cases of limits. If
you master these, there won't be a single limit you can't solve.

Intuition Behind the Squeeze Theorem and Applications


The squeeze theorem may seem hard on your book, but it is a very simple and commonsensical idea.
Here you'll learn what it means and how to apply it to solve limits.

How to Solve Limits at Infinity: Intuition and Examples


Limits at infinity can be confusing. Here you'll learn the basic technique to solve them and some simple
tricks to help you out...

Continuous Compound Interest and Number e


In this page we'll learn about continuous compound interest and the mysterious number e. The law of
compound interest is a universal law that applies not only finance...

The Formal Limit Definition: Getting the Intuition Behind It


The limit definition caughts many students of calculus. Don't be one of them. Here we'll arrive step by
step to what may seem at first glance a convoluted and complex definition...

Continuous Functions: An Intuitive Introduction


All calculus is about continuous functions. Here you'll find the intuition behind this concept and we'll
clear up a common misconception you may even find in your book.

The Intuitive Approach to The Limit of a Function


The concept of limit of a function is the most important of all calculus. It is used to define derivation and
integration, which are the main ideas of calculus.

To make it simple, the limit of a function is what the function "approaches" when the input (the variable
"x" in most cases) approaches a specific value.
Let's analyze this graph:

As the variable x approaches a, the function f(x) approaches L.

The limit of an actual function may look like this:


This is the function f(x) equals x squared. As "x" approaches 1, f(x) approaches 1. To express this we
write:

Is the limit of a function useful? Very good question. It is indeed useful. Many times we find functions
that are undefined at certain values. This means that the function equals something like 0/0, or infinity
over infinity for specific values of "x".

We don't know what those expressions mean!

Using limits, however, we can know what the function is approaching when the variable "x" approaches
that value. We don't need to care whether or not the function is defined at that point.

You'll understand this better with more examples on the page about solving limits.

Solving Simple Limits


Many limits are very easy to solve. Let's start with some:

Let's think. What will happen to the function when x approaches 1 more and more? Let's take our
calculator and make a table:
The function clearly approaches 3, right?

Let's see what happens if x approaches 1, but takes values greater than one.

It also approaches 3...

So, when this happens, we write:

Limit of the Sum of Functions


Now, let's suppose we have two functions:

g(x) doesn't have an "x", so it is constant. This means its value is six, no matter what the "x" is.

What will happen if we add these functions and try to find the limit?
This problem is the same as the previous one. We don't need to make a table to know that when x
approaches 2, x squared will approach 4. Six always will be six. So:

Here we can note two important properties of the limit of a function:

The first one is that the limit of the sum of two or more functions equals the sum of the limits of each
function.

The second one is that the limit of a constant equals the same constant. By a "constant" we mean any
number.

Limit of a Product
In our first example:

We used another important property of the limit of a function. Can you see which one?

This is similar to the property about sums, but with products:

The limit of the product of two or more functions equals the product of the limits of each function.

This also means that whenever you have a function multiplied by any number you can do this:
That is, you can take the number out of the limit sign. Another example:

Limit of a Quotient
As you probably expect by now, the limit of the quotient of two functions equals the quotient of the
limits. For example:

In this example we used all the properties we learned. Using these you can solve many simple limits.

At first, you should think what properties you are using to solve your limits. But as you practice more,
you'll see that you can simply replace "x" for the value it is approaching.

Let's see another example:

Conclusion
The concept of limit is central in calculus.
The limit of a function is what the function approaches when "x" approaches a specific value.
The limit of a sum equals the sum of the limits.
The limit of a product equals the product of the limits.
The limit of a quotient equals the quotient of the limits.
Many times you can simply replace "x" by the value it is approaching to solve limits.
Related Pages
Day 1 of the Intuitive Online Calculus Course: Limits Intuition and Notation
Solving Limits: Intuition and Examples of All Types of Limits
Solving Limits at Infinity
The Formal Limit Definition: Getting the Intuition Behind It
Continuous Functions: An Intuitive Introduction

Solving Limits Made Simple:


Solve Any Calculus Limit
Here you'll find everything you need to know about solving calculus problems involving limits. I
prepared a list of all possible cases of problems. If you master these techniques, you will be able to solve
any type of problem involving limits in calculus.

My goal for this page is to be the ultimate resource for solving limits. You'll find solved examples and
tips for every type of limit.

If you want to receive more lessons like this directly into your email, covering everything in calculus,
make sure you subscribe

Here we focus on problem-solving techniques. If you want to get the intuition behind the idea of limits,
please visit these pages:

Limits and Continuity: Intuitive Introduction


Limits of Functions: More Intuition and Simple Examples

Type 1: Limits By Direct Substitution


These are easiest problems. In these problems you only need to substitute the value to which the
independent value is approaching. For example:

Here we simply replace x by a to get

I don't think you need much practice solving these. They're not much fun either. However, there is an
interesting question here by a reader that relates the technique we use here and the concept of
continuity: Solving Limits by Continuity.

Type 2: Limits by Factoring


Now this is more interesting. In these limits, if you try to substitute as in the previous case, you get an
indetermination. For example:

If you simply substitute x by 1 in the expression you'll get 0/0. So, what can we do? We use our
algebraic skills to simplify the expression. In the previous example we can factor the numerator:

It is easy to spot this type of problems: whenever you see a quotient of two polynomials, you may try
this technique if there is an indetermination.

Watch this video for more examples:

Type 3: Limits by Rationalization


These involve limits with square roots. Watch the video for examples:

In these limits we apply an algebraic technique called rationalization. For example:

If we substitute we get 0/0 and we cannot factor this. The trick is to multiply and divide the fraction by a
convenient expression. (Remember that if you multiply and divide a number by the same thing you get
the same number). In this case we use the following identity:

(Just perform the product in the left to verify it). So, whenever you see the difference or the sum of two
square roots, you can apply the previous identity. The two factors in the left are called conjugate
expressions.

In the example above, the conjugate of the numerator is:

And that's the number we'll be multiplying and dividing our fraction by:

Now, in the numerator we use the algebraic identity I just mentioned:

Now the (1-x) goes away and we get the desired result:
In these limits you always do the same. You recognize the difference between two square roots and the
multiply and divide by the conjugate of the expression. Another example is:

You get an indetermination if you substitute h by zero. You can see there the difference between two
square roots in the numerator.

All you need to do is to multiply and divide by the conjugate of the numerator and work algebraically.

Here's another worked out example: Limit by Rationalization. There are other examples that are
trickier, in the sense that you need to multiply by two expressions. For example:

(p and q are constants). In this case you have square roots both on the numerator and denominator.

In this case you need to multiply and divide by two factors: the conjugate of the numerator and then the
conjugate of the denominator.

This problem is good practice and I recommend you to try it. If you tried and still can't solve it, you
can post a question about it together with your work.

Type 4: Limits at Infinity


In these limits the independent variable is approaching infinity. An example is the limit:

I've already written a very popular page about this technique, with many examples: Solving Limits at
Infinity. At the following page you can find also an example of a limit at infinity with radicals. In this
limit you also need to apply the techniques of rationalization we've seen before:Limit with Radicals

Type 5: Trigonometric Limits


In most limits that involve trigonometric functions you must apply the fundamental limit:
Watch the video for examples:

With things involving trigonometric functions you always need practice, because there are so many
trigonometric identities to choose from.

In the following page you'll find everything you need to know about trigonometric limits, including
many examples: The Squeeze Theorem and Limits With Trigonometric Functions.

Here also more examples of trigonometric limits. I think you'll find all techniques you need to k now in
these:
Trigonometric Limit with tangent
A Somewhat Different Trigonometric Limit

Type 6: Limits Involving Number e


Number e is defined as the following limit:

There are some limits that can be solved using this fundamental limit. This is similar to what we do with
trigonometric limits. We try to accomodate the function algebraically to apply the limit we already
know.

Here you can find a more elaborate example: Limit at Infinity Involving Number e.

Limits by L'Hopital's Rule


If you haven't learned about derivatives yet, you can skip this section. With L'Hopital's Rule we can
solve limits using our skills for finding derivatives.

This rule says that to find the limit of a quotient, you only need to find the derivatives of both the
numerator and denominator and apply the limit again.

This works only if the quotient is an indeterminate form 0/0 or infinity over infinity. For example:

Both the numerator and denominator approach infinity. So, this is an indetermination of the form infinity
over infinity. We derive the numerator and denominator and apply the limit again. That is:
This is cool, isn't it? I'll be posting a page dedicated to this rule shortly. However, there is already a very
interesting example posted by a reader that is very challenging here: Hairy Limit With L'Hopital's
Rule.

Squeeze Theorem and Trigonometric Limits


Intuition and Solved Examples
The squeeze theorem espresses in precise mathematical terms a simple idea. In this page we'll focus first
on the intuitive understanding of the theorem and then we'll apply it to solve calculus problems
involving limits of trigonometric functions.

Let's try to form an intuition using a simple example. Let's consider the following statements:

Pablo always gets a better grade than Peter's or the same.


Pablo always gets a worse grade than Mary's or the same.

This is on any given exam, Pablo always gets a better grade than Peter's (or the same). And also, the
same grade is worse than Mary's (or the same).

Now, let's consider the following case. On wednesday:

Peter got a B
Mary got a B

What is Pablo's grade? It is also B, right? You could say that Pablo's grade has been squeezed between
Peter's and Mary's.

This is the idea behind the squeeze theorem. Really simple! Now, let's translate this into the language of
calculus.

The Squeeze Theorem


In the following video I tell the same things that are written in this section. You can watch and/or read
below.

Given three functions u(x), z(x) and v(x), such that:

That is, z(x) is always greater than or equal to u(x) and less than or equal to v(x). This is saying the same
as the first two statements we had in our simple example earlier.

And we also have that:


That is, when x approaches a given number a, u(x) and v(x) have the same limit L.

The squeeze theorem says that given these conditions, we can say that:

z(x) has been squeezed between u(x) and v(x)! Here's a graph that shows this:

The point where u(x), z(x) and v(x) touch (or almost) is the point (a, L). Because z(x) is squeezed
between the other two functions at that point, it also has to approach that point.

This theorem is actually useful to solve some limits. Let's see one of the most important applications of
this theorem.

The Limit of Sin(x) over x


We will calculate this limit:
This limit is very useful, because it can be used to solve other limits that involve trigonometric
functions. In the following video I develop the proof, that is also written below.

To begin, let's draw a circumference of radius 1 and a triangle, as in the next figure:

Lets call x the angle in the triangle. Well also put names to the points and draw two extra lines, as
shown in the figure below.

One line goes from the center of the circle to the intersection with the other line. The other line a tangen t
to the circle.
We will use this geometry to solve the limit.

First, let's note the following. The area of triangle MOA is smaller than the area of circular sector MOA.
Look at the picture and try to find those.

Remember that the circular sector is like a slice of pizza. Look at the picture until you can see that the
area of triangle MOA is smaller than the area of sector MOA.

Now, let's note that the area of sector MOA is smaller than the area of triangle COA. Look at the picture
and try to find that.

Let's write these two facts:

Here we have an inequality. You start to see how we'll use the squeeze theorem?

Now, let's find the three areas. First, the area of triangle MOA. Its area is base times height over 2:

Now, what is OA? Look at our picture and try to find it. It is the radius of the circle. So, it is equal to 1.

Now, let's remember what is sin(x) in a right triangle. It is opposite over hypotenuse:
So, side MB equals the sin of x. Let's replace OA and MB to find the area of triangle MOA:

Now, let's find the area of circular sector MOA. A circular sector is like a slice of pizza. It is a portion of
a circle. It has the same radius as the circle, in this case 1, and an internal angle x:

We know that a circle has an internal angle of 360, or two pi radians. And we know that the area of that
circle equals pi times radius squared. That is:

(Here the "=" sign means that the angle corresponds to that area, not that it equals it. For our purpose
here we can treat it like a normal equal sign.)

Now, we can divide this equation by two pi:

And now we can multiply this equation by x:

This is the formula for the area of a circular sector with an internal angle x. So, in our sector MOA we
have:

But the radius is one:


Let's find the area of triangle COA:

Remember what is the tangent in a right triangle? Opposite over adjacent:

So, the area of triangle COA is:

We now have the tree areas! Let's replace them in our inequality:

We can multiply the three members by 2 and the inequality holds. Let's do that, let's multiply by 2:

We also replaced tangent of x by its equal, sin(x) over cos(x). Now, let's divide the three members by
sin(x). The inequality holds:

Now, we will use a property of inequalities. This property says "if A is less tha n B, the inverse of A is
greater than B". The inverse of a number is 1 divided by that number.

Let's say we have this inequality:

We can confidently say the following:


Let's use this property with the inequality we care about:

We just replaced the functions by the inverses, and changed the "less than" symbols with "greater than"
symbols.

Now, we're ready to use the squeeze theorem! We will squeeze the middle function. We know that:

And also that:

So, the middle function is squeezed. By the squeeze theorem, we know that:

Here's the graph of the function sin(x) over x:


The figure above shos the three function to which we apply the squeeze theorem. The green function is
sinx/x, the red function is cosx and the brown function is the constant function 1.

We can see how sinx/x is squeezed by the other two when x approaches 0.

This may seem a lot of work to prove a simple limit. But you'll see that this is a really useful limit. We
will use it now to solve other limits involving trigonometric functions.

More Examples of Trigonometric Limits


We will solve some problems involving limits with trigonometric functions.

Example 1

First, let's find this limit:

I just rearranged the original limit a little. I replaced tan(x) by sin(x) over cos(x) and moved the x a
little, so it looks like the limit we just proved.

We can now use the result we just got, the limit of sin(x) over x is 1. And the limit of cos(x) is also 1.
So, we can write the limit as:

Example 2

Here's another example. Let's find this limit:

If we just replace the x's by zero, we get 0/0! Let's look at our trigonometric formulas and try to find
something that may be useful.

Let's remember the formula for the sin of x over two:


It looks a lot like what we have in our limit. If we square both sides and solve for 1-cos(x) we have:

Let's replace this trigonometric identity in our limit:

Now, we have a sin of something in the numerator and an x in the denominator. You should start to think
how to use our dear limit we proved.

Keep in mind that what we proved in the previous section is the limit of sin(something) over something.
The argument and the denominator don't necessarily need to be an "x". They can be any function, but
they must be the same.

We need to have in the denominator the same that is in the argument of the sin function. So, we will
multiply and divide the denominator by two. That doesn't affect the limit. We have:

You can just simplify the two's in the denominator and the limit stays the same. But now, what we need
is to separate these expressions in a useful way. Let's do that and find the limit:

We took one two of the numerator out of limit sign and separated the squared sin in two. Notice that this
expression equals the same as the previous one. Here we just use the result we've got in the first limit
and replace x by zero in the second one.

This is a considerably "hard" limit. This is something you may expect to find in an exam.

Example 3

Here's an easy one:


We just multiplied and divided by four. This is a useful technique in this type of limits.

Example 4

Now, let's find this limit:

We just separate the expression and use the result we already know.

The rule of thumb is: whenever you have a limit with trigonometric functions, and x approaching 0, you
may try to use the limit of sin(x) over x to find the limit.

Exercises
To put what you have learned into practice, you may consider purchasing The Calculus Problems
Manual. This is a series of eBooks that contain the essential calculus problems you need to know how to
solve. You'll practice with the types of problems teachers and professors like to put on tests.

The first volume includes exercises on limits involving trignometric functions. To learn more go to: The
Calculus Problems Manual.

Have a Doubt About This Topic? Have an "Impossible Problem"?


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problems you can't solve, please send me your attempt of a solution along with your question. These will
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A Variation of A Trigonometric Limit


Here's a variation of a trigonometric limit. At first it may look quite different to what we've been doing:
We just need to realize that it is

Another Trigonometric Limit


Here's another example submitted by Steve. Here we use the same trick as the example above and use
the fundamental trigonometric limit:

Limits at Infinity Can be Confusing

Learn the Intuition and Simple Techniques to Solve Them


What are limits at infinity? These are limits where the independent variable x approaches infinity.

This is an exciting moment, probably for the first time you'll be dealing with infinity...

Now, what it means that x approaches infinity? In practical terms, it means that below the word limit
you have x instead of x a.

You probably are already familiar with the symbol for infinity, .

Infinity is not a number, is more like an auxiliary concept that we use in the context of limits. When we
say that x approaches infinity we mean that the variable x grows without bounds.

Or another way to put it is that x takes values greater than any number you can come up with. You say
10 million? The variable x is taking values greater than that.

Our concept of limit allows us to talk about these things precisely. For example, let's consider the
following limit:

This is read "the limit as x approaches infinity of one over x".

Here you can't simply "plug" infinity and see what you get, because is not a number. Howe ver, we can
guess what this limit will be using our intuitive understanding.

Take your calculator and try to divide 1 by a very big number. Now try to divide 1 by an even bigger
number. You get very small numbers, right?

This means that 1 divided by x approaches 0 when x approaches infinity. Let me show you the graph of
this function:
Now, to be a little strict, we need to specify whether x is approaching positive or negative infinity:

x + means that x is approaching big positive numbers. For example: 10 million, 50 million, etc.
x - means that x is approaching "big" negative numbers. For example, -10 million, -50 million, etc.
x (without sign) means that x is taking big numbers, either positive or negative

There is a confusing convention of simply using x in any case. To be precise, to say that the limit
when x is equal to something, means that the limits when x + and x - are equal to that
something.

This is the case in the example of the function 1 over x.

In the graph above we can see that when x approaches very big numbers, either positive or negative, 1
divided by x approaches zero. So:

This means that the two limits, when x + and when x -, are equal to zero. You'll get used to this
notation with some more examples.
Solving Limits at Infinity
The neat thing about limits at infinity is that using a single technique you'll be able to solve almost any
limit of this type.

In the following video I go through the technique and I show one example using the technique. In the
text I go through the same example, so you can choose to watch the video or read the page, I recommend
you to do both.

Let's look at this example:

We cannot plug infinity and we cannot factor. So, now we'll use the basic technique used to solve
almost any limit at infinity. It is a little algebraic trick.

Remember the property of fractions that said that you can divide both the numerator and denominator by
the same number and the fraction remains the same? It's just about that.

We will divide this limit by x to the greatest exponent found in the function. In this case it is x 3. So, let's
divide both the numerator and denominator by x 3:

Now, we can divide each term by x :

We can cancel out some things:

Now, we know that any number divided by a very very big number is equal (almost) zero. So, as x
approaches infinity, all the numbers divided by x to any power will approach zero. Plugging this we
have:
Other Techniques for Solving Limits at Infinity
In the following examples we won't be using the basic technique of dividing by the greatest power of x.
We'll be using something even more basic. In the video I go through the same examples as in the text, so
you can choose to watch and listen or read.

Suppose we have this limit:

We can "separate" this fraction:

We did the reverse of adding fractions. Try to add the two fractions in the right side and you'll get the
original function. Whenever you have two or more terms in the numerator, and only one term in the
denominator, you may try to do this.

You simply put each term in the numerator divided by the denominator and add them.

Now, we know that 1/x approaches zero when x approaches infinity. So, we have:

That was straightforward!

Now, we will look at a really interesting problem. Let's consider the limit:

In the numerator we have the sum of all numbers from 1 to "n", where "n" can be any natural number.
Now, as n approaches infinity, the number of terms in the numerator also approach infinity, because
there are n terms. So, the numerator approaches an infinite sum. Isn't this interesting?

To solve this limit, let's try to remember some basic facts about arithmetic progressions.

An arithmetic progression is an ordered set of numbers, where there is a constant "difference" between
successive terms.

For example: 1, 2, 3, 4,... This is an arithmetic progression. The difference between successive terms is
1. We also know the formula that gives us the sum of "n" terms of an arithmetic progression:

In the video above I show a short deduction of this formula. In our limit we have an arithmetic
progression in the numerator. We have:

So, according to the formula we have:

We can replace this in our limit:

This equals:
Now, we can use the technique we used in the previous example. We have only one term in the
denominator, so we will "separate" the fraction. We have:

And finally we have:

Wow! These type of results usually blow my mind. We found that the sum of all natural numbers up to
n, divided by n , approach a finite value: one half.

Limits at Infinity not Existing


Some limits at infinity may not exist. For example, let's try to calculate this limit:

We will use the basic technique of dividing by the greatest power of x. Let's divide all terms by x
squared:

We have:

All numbers divided by any power of x will approach 0 as x approaches infinity. So, we have:
Division by zero is undefined, so this limit does not exist. Some authors of textbooks say that this limit
equals infinity, and that means this function grows without bound.

This is intuitive, because as you divide 1 by very very small numbers, you get very big numbers.

Limits at Infinity With Radicals


Now let's turn our attention to limits at infinity of functions involving radicals. In this case we can also
use the basic technique of dividing by x to the greatest exponent.

In the video I show the same example, so you can watch the video or read the rest of the page.

Let's consider the limit:

We have a radical in the numerator. We use the basic technique of dividing both the numerator and
denominator. In this case we divide by x:

Remember that x equals the square root of x squared. So, we will insert the x in the numerator inside the
radical. To do this we need to square it. So, we have:

Note that you can simply take x squared out of the square root and you'll have the original expression.
Now, we divide each term:

We can simplify this to:

Now, again, all the terms divided by x will approach zero. So we have:

Here we have a situation we didn't have before. We can have either a positive or negative sign. This
depends on whether x approaches positive or negative infinity. We can see this in the graph:
When x approaches positive infinity, the function approaches positive 1. And when x approaches
negative infinity, the function approaches negative 1. The deduction of these two cases is explained with
more detail in he video above.

Continuous Compound Interest and Number e: Intuitive


Introduction to the Omnipresent Number
In this page we'll learn about continuous compound interest and number e. Even if you're not much
interested in finance, you may want to read on anyway, because here we introduce some important
notions, specially number e and new ways of seeing the exponential function.

The principle behind continuous compound interest is present in many natural processes. It is a universal
law that could also be called the law of organic growth.

This law applies when the growth of some quantity is proportional to the quantity that exists at the
present time.

This type of rate is called organic because this is what happens in some circumstances in nature: the
growth of an organism is proportional to the size of the organism.
We'll use the example of continuous compound interest because it is the most practical, and knowing this
stuff can be useful in your life. In the last section of this page we'll also apply our definition of number e
and the exponential function to calculate some limits.

Simple Interest and Compound Interest


Simple Interest

To introduce number e, we'll use the example of continuous compound interest. Let's first review how
simple interest works.

Let's say you have 1$ in the bank. Your bank says that their rate is 100%, per year. This means that at
the end of the first year, you'll receive 1 extra dollar. You doubled your capital, now you have 2$. This
is how simple interest works. As its name says, really simple.

Continuous Compound Interest

Your bank implemented a new, "fairer" policy. Before, you were paid your interest only at the end of the
year. Now they pay you 50% interest per half-year. That is, after half a year, you receive 50% of interest
calculated on the capital you kept from the beginning of the year.

Then, at the end of the year, you receive 50% interest calculated on the capital you kept starting at the
middle of the year. Let's see how much you'll have after one year with this new method. Analyze the
next diagram, where this quantity is calculated:

We see that at the end of the year, you end up with 2.25$. Compare this with the 2$ dollars you ended up
with simple interest. Let's rewrite the calculation in an algebraicly advantageous way. The capital you
have at the end of the year is:
Notice that in the second line we factor (1+1/2) and we obtain a more comfortable algebraic expression.
Now, let's say that your bank becomes even more generous and instead of just two payments a year, they
pay 33% (one third) of interest three times per year.

In this case, after the two first payments you will have:

This is a very similar expression to the one before. Now, at the end of the year you get a third payment
of 1/3 interest, so you finally end up with:
Theses cases give us the idea of what will happen if the bank makes n payments per year, of 1/n interest.
The money you will have at the end of the year is:

Suppose now that the bank adds up your interest to your account at every instant of every day. How
much money will you have at the end of the year? Because n represents how many times per year the
bank pays you the interest, the amount you'll have at the end of the year is the limit as n approaches
infinity of the above quantity:

This scheme is what is called continuous compound interest. And by the way, we arrived to
the definition of number e. The limit above is exactly its definition:

This is an interesting way of defining a number. This number is defined as the amount of capital you'll
have, after 1 year, by depositing 1$ into an account that pays 100% of continuous compound
interest per year.

This number not only appears in finance, but in many other places. This is because the principle behind
compound interest is a very simple and universal one: the rate of growth of one quantity at a specific
instant is proportional to the quantity present at that instant.
Just to know, these are some approximated values of this constant:

Notice that the limit converges rapidly to a fixed number. For example, the difference in the values for
n=100 and n=300 is not that big.

Continuous Compound Interest and The Exponential Function


Using the same ideas as in the previous section, we can not only define number e, but also the
exponential function. If you analyze the calculations we did, you'll see that the 1 in the 1/n fraction in
the definition of e is the initial capital:

If, instead of 1, we write x in its place, what we'll get is the amount of money we'll have with an initial
capital of x dollars. Using an algebraic trick, we'll be able to show that this quantity is exactly the
exponential function evaluated at x. Let's consider the expression:
When taking the limit as n approaches infinity of this expression, we get the amount we'll end up if our
initial capial is x dollars. We'll make a change of variables. Let's define a number m as one that satisfies
the following equation:

If m satisfies the equation above, solving for n, we can express it as:

Replacing the two previous equations in the expression we are analyzing, we get the following:

Using a basic property of exponents, we can write this as:

Now, we want to take the limit as n approaches infinity of the above expression. There is one problem,
though, n is not in the expression on the right! We can get around this if we remember the definition of
m. From the equation we used to define it, we can write m as:

Here we are considering x as a positive number because, remember, it represents an amount of money.
From this expression we can conclude that if n approaches infinity, m also approaches infinity. Also, if
m approaches infinity, n also approaches infinity.

This means that when taking the limit, it doesn't matter if we write n or m as the variable approaching
infinity, because the two statements are the same. This allows us to calculate the limit of the expression
to the right:
We can think of the x in the exponent on the right side as representing multiplying the expression on
brackets "x times". This interpretation is correct when x is an integer, but not when x is a non-integer
real number. Anyway, the property we need to use now is valid for any x, integer or not.

The property we're going to use is that we can "interchange" the order between the exponentiation and
the limit operation:

When x is an integer, this is the rule for calculating the product of functions: the limit of a product
equals the product of the limits. Now, what is between brackets on the right side is exactly how we
defined number e:

With this, we can understand the expression e^x intuitively as the amount of money you'll have after one
year of depositing x$ in a 100% continuous compound interest account. This is a fun way of seeing the
exponential function.

The Exponential Function as a Series


There is another way of seeing the exponential function: as a series. Series is a topic you'll learn later
on, but this particular series is so important that I consider it useful to define it now. When learning
about derivatives, this series expression will be useful for showing the important properties of the
exponential function.

We know that the exponential function can be expressed as a limit:

But there is a way to expand the expression inside the limit sign. Namely, we can use the binomial
theorem (for a good resource on the binomial theorem, visit KhanAcademy's video on the binomial
theorem). One way to write the binomial theorem is:
Writing a=1, b=1/n in the equation above, we get:

Now, when n approaches infinity, the -1, -2 etc. in the expressions (n-1), (n-2) etc. do not make much
difference. If n=infinity, n-a=infinity. That is, when n approaches infinity, the following happens:

This means we can simplify the expression:

And we're left with:

Notice that the sum on the right side continues forever, it is an infinite sum. An infinite sum is called a
series.

The same can be done with the exponential function evaluated at any point x. Using the binomial
theorem as we just did, you can show that:

This expression of the exponential function as a series is so useful that many times is used as its
definition. You'll learn much more about it and other series later.
Calculating Limits Using the Definition of Number e
There is one last application of the exponential function that we'll learn on this page. The definition of
the exponential function as a limit also helps us in the calculation of some other limits.

Specifically, it helps in limits where there are expressions resembling the definition of e. Let's go
directly to some examples.

Example 1

Let's begin with a simple one. Let's calculate the limit:

What we do is to use the properties of exponents, and the fact that the limit of a product equals the
product of the limits:

The two factors up there equal the definition of number e, so:

And this is the answer:


Example 2

Let's calculate the following limit:

Here again we use some properties of exponents to write this expression in a way that will put number e
in evidence:

What is between brackets equals number e:

And that's the answer:

Example 3

Now let's find the following:


To solve this one we need to make a change of variables. The idea is the as when we defined the
exponential function as a limit. We can define a number y as one such that:

The equation to the left of the arrow is how we define y, the equation to the right is a consequence of
how we defined y. If we replace -1/x by 1/y and x by -y, we get the following:

Here we used the fact that the limit of a quotient equals the quotient of the limits.

Example 4

This looks somewhat like the definition of e, because the variable x is in the exponent. So, we are going
to make a change of variables that will force this to look more like number e. We define y to be a
number such that:

If we solve for x in the equation above, we get the following:


The last equation shows that x approaches infinity if and only if y approaches infinity. So, we can write:

The Formal Limit Definition: Getting the Intuition Behind


It
Why do we need a formal limit definition? You may say we already have a definition. Isn't that
what we learned in limit of a function?

In fact, that was just the informal definition. Now, we'll try to arrive to a more formal one.

Why do we need a formal definition? Simply because it is precise. It allows us to clear any
misconception or doubt.

Do you have a question or doubt about this topic? An "impossible problem"? Submit it
here!

The Informal Limit Definition

Let's start with the informal limit definition. In limit of a function, we said that the limit of a
function f(x) when x approaches a value "a" is simply the value f(x) approaches.
Now, what does "approaches" even mean? I know, I know... We have an intuitive idea of what
that is. For example, just by looking this graph we can see that the function is approaching L near
point a:

But now I have another question for you... Can you describe step by step how you came to the
conclusion that f(x) approaches L as x approaches a? If a computer had to "decide" whether or
not L is the limit of f(x), could you write the program?

A Concept of Distance

It turns out that sometimes it is hard to define precisely an intuitive idea, but let's give it a try.

First of all, we need a concept of distance. The distance between two numbers is relatively easy
to define in mathematics. For example, we could define the distance between numbers "a" and
"b" as the difference between them:

So, for example, the distance between 3 and 2 is:


We still need to improve this definition of distance, though. To see why we need to improve it,
let's represent the set of all real numbers as a line:

We can see that the distance d2 is equal to distance d1. However, what would happen if we apply
our definition of distance to numbers -4 and -3? We'll get that the distance is:

We don't get the same distance as with numbers 3 and 2, but we should. We solve this by using
not the difference, but its absolute value instead.

So, the distance between numbers a and b is defined as the number:

Using this definition with numbers -4 and -3 we get:

And that's correct, because d1=d2.

The Formal Definition

Now we have the necesary tools. Let's approach the limit definition as a kind of game. Let's
consider again the function:
Let's say I'm telling you that the limit of this function as "x" approaches "a" is "L", but you don't
believe me.

So, I challenge you: "Give me any distance from L, as small as you want".

You tell me: "Okay, 0.0001".

"Alright, I guarantee you that if you take any "x" at a distance smaller than (delta) from "a", but
not "a" itself, f(x) will be at a distance smaller than 0.0001".

We could play this game over and over, with any distance from L you choose. The number I
give you depends on the distance you give me.

What the limit definition says is that if the statement about the limit is true, I would win every
time.

The distance from L you give me could be called the margin of "error". So, we use the letter
(epsilon) to denote it. You could associate the number with distance.

Now, using these symbols, how could we write the limit definition using also the concept of
distance? Now I'll present you the epsilon-delta limit definition (drum roll...):

This statement:
Meand the following:

Given a number >0 (error), there exists a number >0 (distance from a), such that:

We can represent all these numbers in a graph:

Graphically, the definition says:

1. Given a margin of error around L (an interval)


2. There exists an interval around "a" such that for all x's in that interval that are not equal to "a",
f(x) will fall between the two green lines.

This definition is a really ingenious way of explaining in exact words an intuitive idea. It is
usually covered up by notation that can confuse you, so I hope this helped to clear things up.

This definition is essential, it is the foundation of all of calculus. Now, I want to show you an
example of using this definition to prove a limit.
You can't usually use this limit definition to "find" limits. We'll just use it to prove that the limit
we've found is indeed the correct one or that it really exists.

Example 1

One of the easiest limits to prove is:

According to the definition, this statement means:

Given any number >0, there exists a >0 such that:

Let's remember that this could be thought of as a game. So, you give me a margin of error to
shoot at L. In this case, the limit L=a.

Now, it is my turn. I must choose a distance from a. The delta I would choose in this case is:

This is valid, there are no rules against choosing the same number. So, let's check the
definition:

And that's it, I won, because:

So,

And I would always win, because for any you choose I can always choose equal to that
number. The definition is satisfied, and we can confidently say that:
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Continuous Functions:
Intuition and How We Use
This Concept to Solve Limits
The concept of continuous functions appears everywhere. All of calculus is about them. In fact, calculus
was born because there was a need to describe and study two things that we consider "continuous":
change and motion.

In calculus, something being continuous has the same meaning as in everyday use. For example, the
growth of a plant is continuous. It doesn't grow by leaps, but continuously.

We know intuitively when something is continuous. For example, I'm pretty sure you'll agree that the
following things are continuous:

The distance between a car and its destination (specifically, the change of distance).
The change in velocity over time of an airplane taking off.
The time it takes you to read this sentence.

And I hope you'll agree the following things are not continuous:

Your age.
The number of words in this page.
How many liters of water you drank yesterday.

The opposite of something continuous (using this everyday usage of the word continuity) is
called discrete.

Here we are talking about the physical intuition behind continuous functions. But how we translate
this intuitive concept into the language of math, specifically, that of functions?

As in many other instances, here graphs can help a lot to develop a clear intuitive understanding. Here
are some graphs of continuous functions:

Intuitively, we can say that a function is continuous when you can draw its graph without lifting
your pencil. So, clearly, the functions above are continuous.

Now, let's see an example of a discontinuous function:


Clearly, you can't draw this graph without lifting your pencil at some point. This intuitive definition of
continuous functions is easy to understand, but it is not specific enough. How could a computer decide
whether or not a given function is continuous, using that definition?

To reach a more exact definition of a continuous function, we first need a slightly modified concept of
limit.

One-Sided Limits
When we talked about limits, we said that the expression:

Means that as x approaches a, f(x) approaches L. Graphically:


Here, it doesn't matter "how" x approaches a. It could approach it with values greater than a, or values
that are less than a.

If we only allow x to approach a with values that are less than a, we say that we are taking the left-sided
(or left-handed) limit, and it is expressed as:

Conversely, if we only allow x to approach a with values greater than a, we say that we are taking the
right-sided (or right-handed) limit, and we write it as:

This expression is read: "The limit of f(x) as x approaches a from the right equals L".

For example, in the function:


The left-sided limit as x approaches a is:

And the right sided limit is:

We can see (using our intuitive definition) that this function is not continuous. Why? Because it has a
leap. In terms of one-sided limits, this is expressed as:

So, our first condition for a function to be continuous is that at each point the one -sided limits must be
equal.

Is this sufficient to cover all cases of discontinuous functions? What about the following function:
We can see that:

But, this function is not continuous at point a. To cover this case we must include the condition:

But there's a nice detail here. Whenever we have that the one-sided limits are equal, we also have that
they equal the "common" limit, that is:

So, we can reduce our conditions for a function to be continuous at a point "a" to a single one:

A Common Misconception
In most textbooks they tell you that for a continuous functions, two conditions are met:

1. f(x) is defined for x=a.


2.
The second condition is what we saw in the previous section. The first one, though, I believe, is
nonsense.

If f(x) is not defined for x=a, we can't even talk about f(x) being continuous at that point. Why? Because
continuity is only defined for points in the domain of the function!

As we saw in domain of a function, for a function to be correctly defined, we must specify the domain.
For example:

This function is not defined for x=1. So, the domain must be all real numbers that aren't 1. We can't even
talk about the continuity of this function at x=1.

However, if the define the piecewise function:

We have that, if x is distinct from 1:

And also:

But f(1)=0. So, we have that:

This implies that this is not a continuous function. It looks like this:
Most "discontinuous" functions you'll encounter in problems will be like the previous one (not the
piecewise function, but the first one). Your job would be to find (if it exists) a point where the function
is not defined.

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