Introduction to Applications of Logarithm and Exponential Equations
Now that we can solve exponential and logarithmic equations, we can solve many applied problems. We will need the compound growth formula for an investment earning interest rate r , compounded n times per year for t years, Exponents and Logarithms Applications of Logarithm and Exponential Equations and the exponential growth formula for a population growing at the rate of r per year for t years, n ( t ) = n 0 e rt. In the problems below, we will be looking for the time required for an investment to grow to a specified amount.
Examples
How long will it take for $1000 to grow to $1500 if it earns 8% annual interest, compounded monthly?
In the formula Exponents and Logarithms Applications of Logarithm and Exponential Equations we know A ( t ) = 1500, P = 1000, r = 0.08, and n = 12. We do not know t .