Still Confused?

Try reviewing these fundamentals first

- Home
- AU Maths Methods
- Applications of Logarithmic Functions

Still Confused?

Try reviewing these fundamentals first

Still Confused?

Try reviewing these fundamentals first

Nope, got it.

That's the last lesson

Start now and get better maths marks!

Get Started NowStart now and get better maths marks!

Get Started NowStart now and get better maths marks!

Get Started NowStart now and get better maths marks!

Get Started Now- Lesson: 18:48
- Lesson: 26:20

In this section, we will revisit the connection between mathematics and finance, but from a different perspective. We will see how a slight variation of the Compound interest formula can help us understand some of the core concepts in Finance – Future value and Present value.

Related Concepts: Derivative of inverse trigonometric functions, Derivative of logarithmic functions

future value and present value: ${ FV = PV (1+\frac{r}{n})^{nt}}$

${FV}$: Future Value

${PV}$: Present Value

${r}$ : Annual interest rate

${t}$: total time given in**years **

${n}$ : number of times compounded in a year, if

${FV}$: Future Value

${PV}$: Present Value

${r}$ : Annual interest rate

${t}$: total time given in

${n}$ : number of times compounded in a year, if

Compound daily: |
n = 365 |

Compound monthly: |
n = 12 |

Compound quarterly: |
n = 4 |

Compound semi-annually: |
n = 2 |

Compound annually: |
n = 1 |

- 1.What is the future value of $30,000 which grows at an annual interest rate of 11%, compounded monthly, for three years?
- 2.What is the present value of $15,000 sixteen months from now if the annual discount rate is 10%, compounded quarterly?

24.

Applications of Logarithmic Functions

24.1

Logarithmic scale: Richter scale (earthquake)

24.2

Logarithmic scale: pH scale

24.3

Logarithmic scale: dB scale

24.4

Finance: Future value and present value