Business Maths - Lecture 5
Business Maths - Lecture 5
1
Learning outcomes
• Understand the relation between the exponential and
logarithm functions.
• Apply the laws of exponential and logarithm functions to
solve equations.
• Sketch the graphs of exponential and logarithm functions.
• Solve problems related to exponential growth,
exponential decay and logistic growth models.
2
Exponential functions
Exponent
f x b , x
b 0, b 1
Base
3
Laws of exponents
No. Rule Example
1 1 1 1 1
1. x
b b by x y
36 36 36
3 6
3 6
36 6 2
7
x 7 3 1
2. b x y 16 4
y
b 3
16 4 2
16 2 4
b
16 2
6
2
1 16
2
1
b
5
x y
3. b xy
32 32
3 35 2
32 32 2 4
5 5
4
Laws of exponents
No. Rule Example
1 1 1
x x x
4. ab a b 16 49 2 16 49 4 7 28
2 2
6
x x
1
1
6
3
a a 3 3 3 27
2 2
5. x
b b 1 1
5 2
25
53 53 6
5
Solving exponential equations
• First observe whether both sides of the equation can be
expressed in terms of the same base. If it is possible,
then m n
b b m n
6
Example 5.1
3 x 1
• Solve the equation 2 2.
1
3 x 1
Converting both sides to exponent form, 2 2 .
2
8
Graphing exponential functions
9
The base e
• The constant e is known as the natural exponent. It is
used widely and in many contexts.
• It is an irrational number and is defined by the
expression m
1
lim 1
m
m
12
Logarithm functions
y
y log b x b x
Base
14
Common and natural logarithms
• Two numbers are widely used as the base for logarithms.
• Logarithms with base 10 are called common logarithms
and logarithms with base e are called natural logarithms.
• We denote log10 x as log x and loge x as ln x.
15
Example 5.4
• Express the following logarithm equations in
exponential form.
y
3
y log b x b x
(a) log x 3 log10 x 3 x 10
x
(c) ln 2 x log e 2 x 2 e
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Laws of logarithms
No. Rule Example
m 14
2. log b m log b n log b log14 log 2 log log 7
n 2
1
3. n log b m log b m n 2
2log 3 log 3 log
9
17
Laws of logarithms
No. Rule Example
18
Common errors
19
Example 5.5
• Expand and simplify the following expressions.
(a) log 4 16 x log 4 16 log 4 x
2
log 4 4 log 4 x
2 log 4 4 log 4 x
2 log 4 x
20
Example 5.5
• Expand and simplify the following expressions.
3
x 2
(b) log 3 x log 3 x 2 log 3 3
3 x
3
log 3 x 2 x log 3 3
3
log 3 x 2 x
3
21
Example 5.5
• Expand and simplify the following expressions.
1
(c) ln e 2 x x ln e 2 x ln x
2
1
2 x ln e ln x
2
1
2 x ln x
2
22
Solving exponential equations
• First observe whether both sides of the equation can be
expressed in terms of the same base. If it is possible,
then equate the exponents.
• If this is not possible, we “take logarithms” on both sides
of the equation to solve for x.
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Example 5.6
• Solve the following equations for x.
x 1 1 (b) 3 x 1
20
(a) 3
27 ln 3x 1 ln 20
x 1 3
3 3
x 1ln 3 ln 20
x 1 3
ln 20
x 4 x 1 2.727
ln 3
x 1.727
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Example 5.6
• Solve the following equations for x.
x 1
(c) 2e 14 150
2e x 1 136
e x 1 68
x 1
ln e ln 68
x 1ln e ln 68
x 1 ln 68 4.2195
x 5.2195 25
Solving logarithm equations
• First reduce it to the form y = logb x.
• Use the definition of a logarithm to transform the
equation to its exponential form.
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Example 5.7 (a), (b)
• Solve the following equations for x.
(a) log 2 x 6 (b) log x 49 2
6
x 2 x 2 49
64 x 7 or 7 (reject)
27
Example 5.8 (a), (b)
• Solve the following equations for x.
(a) log 2 x log 2 5 7
log 2 5 x 7
7
5 x 2
128
128
x
5
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Example 5.8 (a), (b)
• Solve the following equations for x.
(b) 2 ln x ln 3 2
ln x 2 ln 3 2
x2
ln 2
3
x2
e 2
3
x 2 3e 2 x 3e 4.708 29
Graphing logarithm functions
• Since the logarithm function is defined for only x > 0, the
domain of f is (0, ∞). The range of f is (–∞, ∞).
• As x can never be zero, there is no y-intercept.
• Since logb 1 = 0, the x-intercept is always 1.
• If b > 1, the graph rises from left to right. If 0 < b < 1, the
graph falls from left to right.
• The graph of f(x) = logb x is a mirror reflection of the
graph f(x) = bx about the line y = x.
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Example 5.9
• Sketch the graph of f(x) = ex and f(x) = ln x on the same
axes.
31
Relation between exponential and
logarithm functions
• This relationship is described algebraically by
eln x x
32
Exercise
• Try Discussion questions Q3, 4 and 5.
33
Exponential growth and decay model
• Exponential growth • Exponential decay
• Quantity grows at a rate • Quantity decreases at a rate
directly proportional to their directly proportional to their
amount amount
Q(t) = Q0ekt Q(t) = Q0e–kt
• Q(t) represents a quantity at • Q(t) represents a quantity at
time t time t
• Q0 is the quantity that is • Q0 is the quantity that is initially
initially present (t = 0) present (t = 0)
• k is the growth constant. • k is the decay constant. 34
Exponential growth and decay model
• Exponential growth • Exponential decay
35
Example 5.11
• A multi-national company purchased a set of printing
machines for $500,000. After 3 years, the value of the
machines had decreased to $350,000. Assuming that
the machine’s value decreases exponentially, what will
its value be after 7 years?
36
Example 5.11
Since the value decreases exponentially, it follows the
exponential decay function Q(t) = Q0e–kt.
37
Example 5.11
The value of the machine after 3 years is $350,000, i.e.
Q(3) = 350,000.
k 3
500, 000e 350, 000
3k
e 0.7
3k ln 0.7
k 0.11889
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Example 5.12
• A division of Western Mobile produces a certain type of mobile
phone. The training and development section has determined
that after completing a basic training program, a new employee
will be able to assemble Q(t) = 40 – 20e–0.5t mobile phones per
day, where t is the number of months after which the employee
starts work on the assembly line.
• (a) How many mobile phones can a new employee assemble
per day after completing the basic training program?
• (b) How many mobile phones can an employee with 6
months experience assemble per day?
• (c) What is the greatest number of mobile phones an
experienced employee can assemble per day?
40
Example 5.12
(a) Immediately after completing the basic training
program, t = 0.
0.50
Q 0 40 20e 20
(b) After 6 months experience, t = 6.
0.56
Q 6 40 20e 39
(c) As t gets larger, e–0.5t gets closer to 0. This means that
40 – 20e–0.5t gets closer to 40.
Hence greatest number of mobile phones = 40.
41
Logistic growth model
• Quantity exhibits exponential growth at the beginning
stages and reaches a “saturation” stage as time
increases.
A
Q t kt
1 Be
42
Logistic growth model
• Curve is shaped like the
letter S.
• Growth rate increases at
first but decreases quite
rapidly as t increases.
• As t gets larger, the
quantity approaches A
but never exceeds A.
43
Example 5.13
• The number of students who contracted influenza in a
private school after t days during an epidemic is
approximated by the model
6000
Q t kt
1 1500e
• After 6 days, 50 students had contracted flu. How many
students will contract flu after 10 days?
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Example 5.13
50 students contracted flu after 6 days, i.e. Q(6) = 50.
6000
6k
50
1 1500e
6000 50 1 1500e 6 k
6k
120 1 1500e
6k
e 0.07933
6k ln 0.07933
k 0.42235 45
Example 5.13
Hence 6000
Q t
1 1500e 0.42235t
After 10 days, the number of students who contracted flu
is given by
6000
Q 10 0.4223510
1 1500e
261.199
261
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Exercise
• Try Discussion questions Q6, 7 and 8.
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