Where does rationality break in the Leibniz formula for π?

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Lebniz's formula is an infinite sum of fractions, meaning we are dealing with rational numbers everywhere in it. If you start to approximate π (π over 4) by calculating the partial sums of the formula, you can keep using fractions - it's all just the matter of finding the least common multiple of the denominators and thus expanding the fractions.

The approximation goes like 1, 2/3, 13/15, 76/105, ...

Theoretically, you can repeat this fraction expansion infinite number of times. And no matter how long you're doing it, you will always get a rational number.

But if you never stop, you do it all the way down to infinity, the result is π over 4, which is insanely irrational. What is the point where (and the reason why) this rational pattern breaks?

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There is no such point. This is an instance of the fact that any real number (rational or not) can be expressed as the limit of a sequence of rational numbers.

A similar situation occurs with the sequence $\left(\frac1n\right)_{n\in\mathbb N}$. Each term of the seuence is greater than $0$. But the limit of the sequence is $0$. When do the terms of the sequence become $0$? Never!

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It breaks nowhere, it is just that a sequence of rational numbers can converge to irrational numbers. You can ask the same question about the sequence 3, 3.1, 3.14, 3.141, 3.1415, etc.