the number e and natural logs chapter 8.4 and 8.3
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The Number e and Natural Logs
Chapter 8.4 and 8.3
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The Number e• Like π and i, e denotes a number.
• e, the Eular Number, is named after the mathematician that discovered it, Leonhard Eular (1707 – 1783).
• e is also known as the Natural Base.
• The number e is irrational – its’ decimal representation does not terminate or follow a repeating pattern.
• e ≈ 2.18281828459045…
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The Natural Logarithm
• The logarithm with the base e is called the natural logarithm.
• Most scientific calculators have keys to evaluate natural logarithms.
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Using e in “real life”
• e can be found in the formula to calculate Compound Interest for accounts that build interest continuously.
A = Amount P = Principal r = rate t = time
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More Money, More ProblemsEx. Continuously compounded interest
You deposit $1000.00 into an account that pays 8% annual interest compounded continuously. What is the balance after 1 year?
P = 1000, r = .08, and t = 1
A=Pert = 1000e.08*1 ≈ $1083.29