What does “log” mean?
Posted by admin
derejrcar asked:
In an explanation of a problem such as this:
The formula is An = Ao(1 + r)^n
In an explanation of a problem such as this:
The formula is An = Ao(1 + r)^n
If An = 2000, Ao - 1000, r = .10 for 10%, so the equation is
2000 = 1000(1.1)^n Dividing both sides by 1000, you get
2 = 1.1^n Now take the log of both sides.
log(2) = log(1.1^n) The exponent moves in front of the log times the log.
log(2) = n*log(1.1) Solving for n, you get:
log(2)/log(1.1) = n
7.27 = n, so about 7.27 years ( or 8 if you want a whole number answer)
What does “log” stand for/mean, or what does it require you to do? I have no idea.
Rhonda
