proof relating to limit definition of e
I'm studying the book A Primer for the Mathematics of FinancialEngineering, along with it's solution guide. I've ran into trouble with the solution to question 7 in chapter 1.
The problem is:
Show that $(1+\frac{1}{x})^x < e < (1+\frac{1}{x})^{x+1}$ .
Specifically, I'm having trouble with one step in the solution.
It says that
$$x\ln\left(1+\frac{1}{x}\right)<1<(x+1)\ln\left(1+\frac{1}{x}\right)$$
can be written as
$$\frac{1}{x+1} <\ln\left(1+\frac{1}{x}\right)<\frac{1}{x}, \forall \ge 1.$$
How can the first equality (or is it inequality?) be written as the second?
The inequality $1<(x+1)\ln(1+\frac{1}{x})$ becomes $\frac{1}{x+1} <\ln(1+\frac{1}{x})$ upon dividing by $x+1$, and the inequality $x\ln(1+\frac{1}{x})<1$ becomes $\ln(1+\frac{1}{x})<\frac{1}{x}$ upon dividing by $x$.
Express the log function as $\log (x) = \int_1^x \frac{du}{u}$, and note that this is the inverse of the exponential function $e^x$.
Inasmuch as the integrand is an increasing function, it is straightforward to show that
$$\frac{1}{x+1}=\frac{1}{1+1/x}\left((1+1/x)-1\right)<\int_1^{1+1/x} \frac{1}{u}\,du < (1)\left((1+1/x)-1\right)=\frac{1}{x}$$
Now, exponentiation of terms reveals
$$e^{1/(x+1)} < 1+\frac{1}{x} < e^{1/x}$$
from which the desired inequalities emerge as
$$\left(1+\frac{1}{x}\right)^x < e < \left(1+\frac{1}{x}\right)^{x+1}$$
you can easily show that $x\mapsto (1+\frac{1}{x})^x$ is increasing, $x\mapsto (1+\frac{1}{x})^{x+1}$ is decreasing and that both converge to $e$. Therefore you got your inequality.