I first begin to change it into $\mathrm{e}^{x\ln\left(1+\frac{1}{x}\right)}$
I believe the way of thinking here is: A large number times a very very small number. Also, that it is approaching 1, which leads this equation to equal to e. I would just like a better explanation to understand this better! Please and thank you.
$$L = \lim_{x\to\infty} \left(1+\frac 1x\right)^x$$ $$\log L = \lim_{x\to\infty} x\log\left(1 + \frac 1x\right) $$$$= \lim_{x\to\infty}\frac{\log\left(1 + \frac 1x\right)}{\frac 1x} = \lim_{x\to\infty} \frac{\frac{1}{1 + \frac 1x}\cdot \frac 1{x^2}}{\frac 1{x^2}} =\lim_{x\to\infty} \frac 1{1 + \frac 1x} = 1$$ So $$\log L = 1 \implies L = e$$