[David Sklansky]

e dollars is the amount of money you would have at the end of the year if you put one dollar into a bank that offered 100% interest compounded continuously.

For those who don't know what this means lets change it to a bank that compounded your million dollars every 3.65 days. At a 100% annual interest rate. So every 3.65 days they gave you one percent. After 3.65 days you would have 1,010,000. After 7.30 days you would have 1,020,100. After 10.95 days you would have 1,030,201. At the end of the year you would have just short of "e" million dollars (as opposed to two million with no compounding or 2.25 million if interest was compounded every six months.) The thing is that even though shrinking the time period for compunding makes you more and more money, you run into one of those limit thingies that jason and boris love and you can't get past e.

The more important thing about e concerns making prop bets when poker tournaments redraw. If there are more than a few players left from 20 to a googol, the chances that everybody will draw a new seat is almost exactly one out of e.