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[parent] $(1 + 1/n)^n$ is an increasing sequence (Theorem)
Theorem 1   The sequence $ (1 + 1/n)^n$ is increasing.
Proof. To see this, rewrite $ 1 + (1/n) = (1 + n)/n$ and divide two consecutive terms of the sequence:
$\displaystyle { \left( 1 + {1 \over n} \right)^n \over \left( 1 + {1 \over n-1} \right)^{n-1} }$ $\displaystyle =$ $\displaystyle { \left( {n+1 \over n} \right)^n \over \left( {n \over n-1} \right)^{n-1} }$  
  $\displaystyle =$ $\displaystyle \left( {(n-1)(n+1) \over n^2} \right)^{n-1} {n+1 \over n}$  
  $\displaystyle =$ $\displaystyle \left( 1 - {1 \over n^2} \right)^{n-1} \left( 1 + {1 \over n} \right)$  

Since $ (1 - x)^n \ge 1 - nx$, we have

$\displaystyle { \left( 1 + {1 \over n} \right)^n \over \left( 1 + {1 \over n-1} \right)^{n-1} }$ $\displaystyle \ge$ $\displaystyle \left( 1 - {n-1 \over n^2} \right) \left( 1 + {1 \over n} \right)$  
  $\displaystyle =$ $\displaystyle 1 + {1 \over n^3}$  
  $\displaystyle >$ $\displaystyle 1,$  

hence the sequence is increasing. $ \qedsymbol$
Theorem 2   The sequence $ (1 + 1/n)^{n+1}$ is decreasing.
Proof. By an inequality for differences of powers, we have
$\displaystyle (n^2)^n - (n^2 - 1)^n \ge n (n^2 - 1)^{n-1}. $
From this we may conclude
$\displaystyle n^{n+1} n^n = n (n^2)^n$ $\displaystyle \ge n (n^2 - 1)^n + n^2 (n^2 - 1)^{n-1}$    
  $\displaystyle > n (n^2 - 1)^n + (n^2 - 1) (n^2 - 1)^{n-1}$    
  $\displaystyle = (n + 1) (n^2 - 1)^n$    
  $\displaystyle = (n + 1)^{n + 1} (n - 1)^n .$    

The last line follows from the factorization $ n^2 - 1 = (n + 1) (n - 1)$. Dividing through,
$\displaystyle {n^n \over (n - 1)^n} > {(n + 1)^{n + 1} \over n^{n + 1}} , $
which simplifies to
$\displaystyle \left( {n \over n - 1} \right)^n > \left( {n + 1 \over n} \right)^{n + 1}, $
or
$\displaystyle \left( 1 + {1 \over n - 1} \right)^n > \left( 1 + {1 \over n} \right)^{n + 1}. $
$ \qedsymbol$



"$(1 + 1/n)^n$ is an increasing sequence" is owned by rspuzio.
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bounds for e (Theorem) by rspuzio
values of $(1 + 1/n)^n$ for $0 < n < 26$ (Data Structure) by PrimeFan
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Cross-references: line, powers, differences, inequality, decreasing, terms, consecutive, divide, increasing, sequence

This is version 6 of $(1 + 1/n)^n$ is an increasing sequence, born on 2006-03-25, modified 2007-05-16.
Object id is 7775, canonical name is 11nnIsAnIncreasingSequence.
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AMS MSC33B99 (Special functions :: Elementary classical functions :: Miscellaneous)

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