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In this last section of this chapter we have to look at some applications of exponential & logarithm functions.
Compound Interest
This first application is compounding interest & there are in fact two separate formulas which we'll be looking at here. Let's get first those out of the way.
If we were to put P dollars in an account which earns interest at a rate of r (written as a decimal) for t years (yes, it have to be years) then,
1. if interest is compounded m times per year we will have t m
A = P (1 + (r /m)tm
dollars after t years.
2. if interest is compounded continuously then we will have
A = Pert
In a yacht race the second leg was half the length of the first leg, the third leg was two-thirds of the second leg, and the last leg was twice the length of the second leg. If the
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There are also two lines on each of the graph. These lines are called asymptotes and as the graphs illustrates as we make x large (in both the +ve and -ve sense) the graph of the h
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