Section 2.

5 enponential Functions cont'd

APPLICATION
en Compound Interest Formula

Mt
A P I F
invested
P principal initial amt at money
present value

A Accumulated amount after t years

Cft
Annual interest rate Decimal

of years
m af times interest is compounded in

1
yr

Note

M I once a
year
M 2 twice a semi
annually
year
 4 4 times
M a
year Quarterly
m 12 12 times monthly

m 52 weekly
m 365 daily etc

Example
murmur
If invest 2000 into an account
you
13 Semin annually how much
paying
is in the account after 8 years

P 2000 mt
A P I
r 0 13
Im
m 2
E 8 2000 It 0232218
A
16
2000 1 10065
2000 1 065

A 5478 02
n How much should invest
you
in an account earning 101 quarterly

if 5000 in 6
you get yrs

F
mt
A 5000 P
A Itf
f 0 10
46
m 4 5000 P It
0

f 6
5000 PC l 025

P 50002
1025324

e 2764.38 Do not
Pound up decimals

Always keep all

decimals
If m try

compounding continiously

The Formula becomes

Continious compound
A Pert interest formula

You
Eg invest 1500 at 8

Compounded continuously for 5

How much is in the

years
account

10 1500 A Pert
008
O O8 A 1500
t 5 A 1500C

A A 223774
Section 2.6 Logarithmic Functions
Mmmm

Inverse Function
If f is a function then f inverse f
obtained by interchanging N and
Y
So if p a b is a point on the

graph af f then Pcb a is

t
a
point on
graph of f

Euponential Functions and

Functions are inverse
Logarithmic
each other
af
f n b
f a
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