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Exponents and Logarithms

This document discusses exponential and logarithmic functions. It provides examples of calculating future values using compound interest formulas, and examples of using logarithms to solve compound interest word problems. Specifically, it shows: 1) Calculating future values after 1, 2, and 15 years of an initial $20,000 invested at 5% annual interest. 2) Using a logarithmic equation to calculate how long it will take $20,000 at 5% annual interest to reach $41,578.56. 3) The answer is that it will take 15 years for the initial $20,000 to accumulate to $41,578.56 at 5% annual interest.

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Joshua Andrew Batonghinog
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40 views

Exponents and Logarithms

This document discusses exponential and logarithmic functions. It provides examples of calculating future values using compound interest formulas, and examples of using logarithms to solve compound interest word problems. Specifically, it shows: 1) Calculating future values after 1, 2, and 15 years of an initial $20,000 invested at 5% annual interest. 2) Using a logarithmic equation to calculate how long it will take $20,000 at 5% annual interest to reach $41,578.56. 3) The answer is that it will take 15 years for the initial $20,000 to accumulate to $41,578.56 at 5% annual interest.

Uploaded by

Joshua Andrew Batonghinog
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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 Are functions of the form f(x) = ax

-are inverses of exponential functions


Comparing it to
exponential function:
f(x) = ax
D: (0, ∞)
D: (-∞, ∞)
R: (-∞, ∞)
R: (0, ∞)
VA: x= 0
VA: none
HA: none
HA: y = 0
x-int: (1, 0)
x-int: none
y-int: none
y-int: (0, 1)
 Answer the questions to how many times
are you going to multiply the base by
itself to yield a given number (not 0, not
a negative number).
23 = 8 log 28 = 3 (log base 2 of 8 is 3)

5x = 24 log 524 = x (log base 5 of 24 is x)

x ≈ 1.9746
As early as 23 yrs. old, I started investing my
₱20 000.00 in a reliable financial institution
at 5% interest compounded annually. How
much money was in my account after a
year? After 2 years?

time Interest (0.05 x P) Future value


After 1 yr 1 000 21 000
After 2 yrs 1 050 22 050

How much money is in my account after 15


years? n = mt (total no. of conversion
periods for the entire term )
F = P (1 + i)n m = number of conversion pds/yr
t = number of yrs
Given: P = 20 000
i = 0.05
n = 15
F = P (1 + i)n
F = 20 000 (1 + 0.05)15
time Interest (0.05 x P) Future value
After 1 yr 1 000 21 000
After 2 yrs 1 050 22 050
After 15 yrs 41 578.56
The future value of my ₱20 000.00 after 15
years is ₱41 578.56.
I need to be able to accumulate ₱22 050.00
two years from now. How much should I save
now if the interest compounded annually is 5%?
Given:
F = P (1 + i)n F = ₱22 050.00
i = 0.05
n= 2
𝐹 P=?
P=
(1 + i)n
22 050
P=
(1 + 0.05)2
P = 20 000
I should save ₱20 000.00.
I need ₱41 578.56 to pay for my down payment. How long will it
take for my ₱20 000.00 to accumulate to ₱41 578.56 in an
investment that pays 5% compounded annually?

F = P (1 + i)n

F = P (1 + i)mt
𝐹
= (1 + i)mt
𝑃
𝐹
(1 + i)mt = 𝑃
𝐹
log (1 + i)mt = log
𝑃
Basic Logarithm BL Rule # 2
mt log (1 + i)= logF - logP Rule # 3

𝑙𝑜𝑔𝐹 −𝑙𝑜𝑔𝑃
t =
𝑚𝑙𝑜𝑔(1+𝑖)
I need ₱41 578.56 to pay for my down payment. How
long will it take for my ₱20 000.00 to accumulate to
₱41 578.56 in an investment that pays 5% compounded
annually?
Given:
F = 41 578.56
P = 20 000
i = 0.05
m= 1 (number of conversion period per yr: annually)

𝑙𝑜𝑔𝐹 −𝑙𝑜𝑔𝑃
t =
𝑚𝑙𝑜𝑔(1+𝑖)

𝑙𝑜𝑔41 578.56 −𝑙𝑜𝑔20 000


t = 1𝑙𝑜𝑔(1+0.05)
t =15

It will take 15 years.

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