Applications of Exponential and Log FunctionsA series of free Intermediate Algebra Lessons from Thinkwell's online Algebra series. Thinkwell's products and courses are being used by thousands of students at schools and universities across the globe.
Compound Interest (Finite Number of Calculations) One real world application of exponential equations is in compound interest. The formula for compound interest with a finite number of calculations is an exponential equation. We can solve for a parameter of this equation, and can use logarithms to access parameters in the exponent. Students may be asked to solve compound interest problems with interest compounded biannually, monthly, or daily.
Compound Interest (Continuously) Problems that involve continuous compound interest use a different equation from problems that have finitely compounded interest, but the continuous compound interestequation is also an exponential equation. We use many of the same methods for calculating continuous compound interest as we do finitely compounded interest. To calculate compound interest, we can use logarithms and methods for solving exponential equations.
Exponential Growth and Decay Exponential decay refers to an amount of substance decreasing exponentially. Exponential decay is a type of exponential function where instead of having a variable in the base of the function, it is in the exponent. Exponential decay and exponential growth are used in carbon dating and other real-life applications.
Custom Search
We welcome your feedback, comments and questions about this site - please submit your feedback via our Feedback page. © Copyright 2005, 2009, 2010 - onlinemathlearning.com Embedded content, if any, are copyrights of their respective owners.
|
Custom Search