If they insist that it must be solved at runtime, I would check the size of the computed term (1/(1+2x)) and repeat 'til it's less than 10E-6.
That's a lot of iterations.
p(n) = p(n-1) + 4*((-1)^(n-1))/(2n-1)
n = {1,2,3...} and p(0)=0
I think that p(n)-p(n-1) must be less than the precision you want (0.00001).*Mental note: never start reply math on iPad ;)
My larger conclusion is that either the OP didn't intend to require this analysis or he's surprised that people in an interview+coding mindset are going to get stuck thinking there is a straightforward algorithm. Since he refers to the question as simple for any "seasoned developer" (read: has forgotten algebra ;), I presume he actually misstated the problem and really expected one of the simplifications people have come up with. Either way, I think it says more about the interviewer than the interviewees.
... although maybe my gripe only came about from knowing enough to immediately see that there had to be some kind of convergence bound, but not knowing/figuring exactly what it was.
iterate and alternately subtract and add 1/i, (then i=i+2) to get your multiplier.
Each iteration multiply 4 times the resulting multiplier. Break when the answer rounded to 5 decimal places == 3.14159
>Given the area of a circle is given by Pi times the radius squared, write a function to calculate the area of a circle.
I think we can assume he was just looking for something trivial.
Also, his next step down isn't really one jump down in difficulty; it's presented as "if you don't even know how to begin to approach that problem I need to make sure that you can code something trivial." That is to say, it's an arbitrary number of steps down that implies little about the initial question's intended difficulty.