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Exponential Functions - Logarithmic Functions - Compound Interest

Gen. Math

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Jessa Lou Liba Capapas
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474 views

Exponential Functions - Logarithmic Functions - Compound Interest

Gen. Math

Uploaded by

Jessa Lou Liba Capapas
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Exponential and Logarithmic Functions

• Exponential Functions
• Logarithmic Functions
• Compound Interest

Copyright © 2006 Brooks/Cole, a division of Thomson Learning, Inc.


Exponential Function
An exponential function with base b and exponent x
is defined by
f ( x)  b x b  0, b  1

Ex. f ( x)  3x y y  f ( x)
x y Domain: All reals
1 1
Range: y > 0
3
0 1 (0,1)
x
1 3
2 9
Laws of Exponents
Law Example

1. b x  b y  b x  y 2 2  2  2  8
1/ 2 5/ 2 6/ 2 3

bx x y 12
2. y  b 5
5123
59
b 5 3

  8 
y 6 1
6 / 3 2
3. b x
b xy 1/ 3
8 8 
64
4.  ab   a b  2m 
x 3
x x
 2 m  8m
3 3 3

x 1/ 3
a a x
 8  81/ 3 2
5.    x    1/ 3 
b b  27  27 3
Properties of the Exponential
Function
y  f ( x)  b x
 b  0, b  1
1. The domain is  ,  .
2. The range is (0,  ).
3. It passes through (0, 1).
4. It is continuous everywhere.
5. If b > 1 it is increasing on  ,   .
If b < 1 it is decreasing on  ,   .
Examples
Ex. Simplify the expression

3x y 
4
2 1/ 2
34 x8 y 2 81x5
 3 7  5
x3 y 7 x y y

Ex. Solve the equation 43 x 1  24 x 2


23 x1 4 x 2
2 2
26 x  2  2 4 x  2
6x  2  4x  2
2 x  4
x  2
Logarithms
The logarithm of x to the base b is defined by

y  logb x if and only if x  b y  x  0


Ex. log 3 81  4; 34  81 
log 7 1  0; 7 0

1
  1 -2 
log1/ 3 9  2;     81
 3  
 
log 5 5  1;  51  5 
Examples
Ex. Solve each equation
a. log 2 x  5
x  25  32
b. log 27 3  x
3  27 x

3  33 x
1  3x  am  an  m  n 
1
x
3
Laws of Logarithms
1. l og b mn  logb m  logb n
m
2. logb    logb m  logb n
n
3. logb m n  n logb m
4. logb 1  0
5. logb b  1

Common Logarithm log x  log10 x


Notation: Natural Logarithm ln x  log e x
Example
Use the laws of logarithms to simplify the
expression: 7
25 x y
log5
z

 log5 25  log5 x7  log5 y  log5 z1/ 2


1
 2  7 log 5 x  log5 y  log5 z
2
For x  0 and 0  a  1,
y = loga x if and only if x = a y.
The function given by f (x) = loga x is called the
logarithmic function with base a.
Every logarithmic equation has an equivalent exponential
form:
y = loga x is equivalent to x = a y
A logarithm is an exponent!
A logarithmic function is the inverse function of an
exponential function.
Exponential function: y = ax
Logarithmic function: y = logax is equivalent to x = ay
10
Examples: Write the equivalent exponential equation
and solve for y.

Logarithmic Equivalent Solution


Equation Exponential
Equation

y = log216 16 = 2y 16 = 24  y = 4
1 1 1
y = log2( ) = 2y = 2-1 y = –1
2 2 2
y = log416 16 = 4y 16 = 42  y = 2
y = log51 1=5y 1 = 50  y = 0

11
Logarithmic Function
The logarithmic function of x to the base b is
defined by
f ( x)  logb x b  0, b  1
Properties:
1. Domain: (0,  )
2. Range:  ,  
3. x-intercept: (1, 0)
4. Continuous on (0,)
5. Increasing on (0, ) if b > 1
Decreasing on (0,  ) if b < 1
Graphs of Logarithmic Functions

Ex. f ( x)  log3 x f ( x)  log1/ 3 x


x
y3 x
1 y
y y  
 3
(0, 1) (0, 1)

(1,0)
x (1,0)
x
y  log3 x y  log1/ 3 x
x
e and ln x
e ln x
x  x  0
ln e  x x
 for any real number x 
1 2 x 1
Ex. Solve e  10
3
e2 x1  30
2 x  1  ln(30) Apply ln to both sides.

ln(30)  1
x  1.2
2
Example
A normal child’s systolic blood pressure may be
approximated by the function p( x)  m(ln x)  b
where p(x) is measured in millimeters of mercury, x is
measured in pounds, and m and b are constants. Given
that m = 19.4 and b = 18, determine the systolic blood
pressure of a child who weighs 92 lb.

Since m  19.4, x  92, and b  18


we have p(92)  19.4(ln 92)  18
 105.72
Compound Interest Formula
mt
 r
A  P 1  
 m
A = The accumulated amount after mt periods
P = Principal
r = Nominal interest rate per year
m = Number of periods/year
t = Number of years
Example
Find the accumulated amount of money after 5
years if $4300 is invested at 6% per year
compounded quarterly.
mt
 r
A  P 1  
 m
4(5)
 .06 
A  4300 1  
 4 

= $5791.48
Example
How long will it take an investment of $10,000 to
grow to $15,000 if it earns an interest at the rate of
12% / year compounded quarterly?
mt 4t
 r   0.12 
A  P 1    15, 000  10, 000 1   
 m  4 
1.5  1.03  ln(1.03) 4t  ln1.5
4t
Taking ln both sides

4t ln1.03  ln1.5 logb m n  n logb m


ln1.5
t  3.43 years
4 ln1.03
Effective Rate of Interest
m
 r
reff  1    1
 m
reff = Effective rate of interest
r = Nominal interest rate/year
m = number of conversion periods/year
Ex. Find the effective rate of interest corresponding to
a nominal rate of 6.5% per year, compounded monthly.
m 12
 r  .065 
reff  1    1  1    1  .06697
 m  12 
It is about 6.7% per year.
Present Value Formula for
Compound Interest
 mt
 r
P  A 1  
 m
A = The accumulated amount after mt periods
P = Principal
r = Nominal interest rate/year
m = Number of periods/year
t = Number of years
Example
Find the present value of $4800 due in 6 years
at an interest rate of 9% per year compounded
monthly.
 mt
 r
P  A 1  
 m
12(6)
 .09 
P  4800 1  
 12 

 $2802.83
Continuous Compound Interest
Formula

A  Pe rt

A = The accumulated amount after t years


P = Principal
r = Nominal interest rate per year
t = Number of years
Example
Find the accumulated amount of money after
25 years if $7500 is invested at 12% per year
compounded continuously.

A  Pe rt

A  7500e 0.12(25)

 $150, 641.53

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