The constant rule: This is simple.

f (x) = 5 is a horizontal line with a slope of zero, and thus its

derivative is also zero. The power rule: To repeat, bring the power in front, then reduce the
power by 1.
The power rule in calculus is a fairly simple rule that helps you find the derivative of a variable
raised to apower, such as: x^5, 2x^8, 3x^(-3) or 5x^(1/2). All you do is take the exponent,
multiply it by the coefficient (the number in front of the x), and decrease the exponent by 1.
EXPONENTIAL RULES. Rule 1: To multiply identical bases, add the exponents.Rule 2: To
divide identical bases, subtract the exponents. Rule 3: When there are two or
more exponents and only one base, multiply the exponents.

Logarithm Rules
The base b logarithm of a number is the exponent that we need to raise
the base in order to get the number. Logarithm as inverse function of exponential
function

The derivative of the sum of two functions is the sumof the derivatives of the two functions: .
Likewise, the derivative of the difference of two functions is thedifference of the derivatives of
the two functions. Thisrule, too, is easily proved from the definition of derivative.Aug 6, 2008

Compound Interest Formula - Explained

Article Category: Finance | 133 Comments

I commonly receive emails in my inbox asking how to calculate compound

interest and what the formula for compound interest looks like, so we're going to
take a look at these questions today.

The concept of compound interest is that interest is added back to the principal
sum so that interest is earned on that added interest during the next
compounding period. If you would like more information on what compound
interest is, please see the article what is compound interest?. For now, let's look
at the formula and go through an example.

Annual compound interest formula

The formula for annual compound interest, including principal sum, is:
A = P (1 + r/n) (nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
Note that this formula gives you the future value of an investment or loan, which
is compound interest plus the principal. Should you wish to calculate the
compound interest only, you need this:
Total compounded interest = P (1 + r/n) (nt) - P

Let's look at an example

Compound interest formula (including principal):
A = P(1+r/n)(nt)

If an amount of $5,000 is deposited into asavings account at an annual interest

rate of 5%, compounded monthly, the value of the investment after 10 years
can be calculated as follows...
P = 5000. r = 5/100 = 0.05 (decimal). n = 12. t = 10.
If we plug those figures into the formula, we get:
A = 5000 (1 + 0.05 / 12) ^ (12(10)) = 8235.05.
So, the investment balance after 10 years is $8,235.05.

Methodology
A few people have written to me asking me to explain step-by-step how we get
the 8235.05. This all revolves around PEMDAS (also known as BODMAS in the
UK) and the order of operations. Let's go through it:
A = 5000 (1 + 0.05 / 12) ^ (12(10))
Using the order of operations we work out the totals in the brackets first. Within
the first set of brackets, you need to do the division first and then the addition
(division and multiplication should be carried out before addition and subtraction).
We can also work out the 12(10). This gives us...
A = 5000 (1 + 0.0041666667) ^ 120
Then:
A = 5000 (1.0041666667) ^ 120
The exponent goes next. So, we calculate (1.0041666667) ^ 120.
This means we end up with:
5000 x 1.6470095042509848

= 8235.0475.
You may have seen some examples giving a formula of A = P ( 1+r ) ^ t . This
simplified formula assumes that interest is compounded once per period, rather
than multiple times per period.

Logarithm Rules
The base b logarithm of a number is the exponent that we need to raise the base in order to get the
number.

Logarithm definition

Logarithm rules

Logarithm problems

Complex logarithm

Graph of log(x)

Logarithm table

Logarithm calculator

Logarithm definition
When b is raised to the power of y is equal x:

by = x
Then the base b logarithm of x is equal to y:

logb(x) = y
For example when:

24 = 16
Then

log2(16) = 4
Logarithm as inverse function of exponential function
The logarithmic function,

y = logb(x)
is the inverse function of the exponential function,

x = by
So if we calculate the exponential function of the logarithm of x (x>0),

f (f -1(x)) = blogb(x) = x
Or if we calculate the logarithm of the exponential function of x,

f -1(f (x)) = logb(bx) = x

Natural logarithm (ln)
Natural logarithm is a logarithm to the base e:

ln(x) = loge(x)
When e constant is the number:

or

See: Natural logarithm

Inverse logarithm calculation

The inverse logarithm (or anti logarithm) is calculated by raising the base b to the logarithm y:

x = log-1(y) = b y
Logarithmic function
The logarithmic function has the basic form of:

f (x) = logb(x)
Logarithm rules
Rule name

Rule

Logarithm product rule

logb(x y) = logb(x) + logb(y)

Logarithm quotient rule

logb(x / y) = logb(x) - logb(y)

Logarithm power rule

logb(x y) = y logb(x)

Logarithm base switch rule

logb(c) = 1 / logc(b)

Logarithm base change rule

logb(x) = logc(x) / logc(b)

Derivative of logarithm

Integral of logarithm

Logarithm of negative number

f (x) = logb(x) f ' (x) = 1 / ( x ln(b)

)
logb(x) dx = x ( logb(x) - 1 /
ln(b) ) + C
logb(x) is undefined when x 0
logb(0)

is undefined

Logarithm of 0

Logarithm of 1

logb(1) = 0

Logarithm of the base

logb(b) = 1

Logarithm of infinity

lim logb(x) = ,when x

See: Logarithm rules

Logarithm product rule

The logarithm of the multiplication of x and y is the sum of logarithm of x and logarithm of y.

logb(x y) = logb(x) + logb(y)

For example:

log10(3 7) = log10(3) + log10(7)

Logarithm quotient rule
The logarithm of the division of x and y is the difference of logarithm of x and logarithm of y.

logb(x / y) = logb(x) - logb(y)

For example:

log10(3 / 7) = log10(3) - log10(7)

Logarithm power rule
The logarithm of x raised to the power of y is y times the logarithm of x.

logb(x y) = y logb(x)
For example:

log10(28) = 8 log10(2)
Logarithm base switch rule
The base b logarithm of c is 1 divided by the base c logarithm of b.

logb(c) = 1 / logc(b)
For example:

log2(8) = 1 / log8(2)

Logarithm base change rule

The base b logarithm of x is base c logarithm of x divided by the base c logarithm of b.

logb(x) = logc(x) / logc(b)

For example, in order to calculate log2(8) in calculator, we need to change the base to 10:

log2(8) = log10(8) / log10(2)

See: log base change rule

Logarithm of negative number

The base b real logarithm of x when x<=0 is undefined when x is negative or equal to zero:

logb(x) is undefined when x 0

See: log of negative number

Logarithm of 0
The base b logarithm of zero is undefined:

logb(0) is undefined
The limit of the base b logarithm of x, when x approaches zero, is minus infinity:

See: log of zero

Logarithm of 1
The base b logarithm of one is zero:

logb(1) = 0
For example, teh base two logarithm of one is zero:

log2(1) = 0
See: log of one

Logarithm of infinity
The limit of the base b logarithm of x, when x approaches infinity, is equal to infinity:

lim logb(x) = , when x

See: log of infinity

Logarithm of the base

The base b logarithm of b is one:

logb(b) = 1
For example, the base two logarithm of two is one:

log2(2) = 1
Logarithm derivative
When

f (x) = logb(x)
Then the derivative of f(x):

f ' (x) = 1 / ( x ln(b) )

See: log derivative

Logarithm integral
The integral of logarithm of x:

logb(x) dx = x ( logb(x) - 1 / ln(b) ) + C

For example:

log2(x) dx = x ( log2(x) - 1 / ln(2) ) + C

Logarithm approximation

log2(x) n + (x/2n - 1) ,
Complex logarithm
For complex number z:

z = rei = x + iy
The complex logarithm will be (n = ...-2,-1,0,1,2,...):

Log z = ln(r) + i(+2n) = ln((x2+y2)) + iarctan(y/x))

Logarithm problems and answers
Problem #1
Find x for

log2(x) + log2(x-3) = 2
Solution:
Using the product rule:

log2(x(x-3)) = 2
Changing the logarithm form according to the logarithm definition:

x(x-3) = 22
Or

x2-3x-4 = 0
Solving the quadratic equation:

x1,2 = [3(9+16) ] / 2 = [35] / 2 = 4,-1

Since the logarithm is not defined for negative numbers, the answer is:

x=4
Problem #2
Find x for

log3(x+2) - log3(x) = 2
Solution:
Using the quotient rule:

log3((x+2) / x) = 2
Changing the logarithm form according to the logarithm definition:

(x+2)/x = 32
Or

x+2 = 9x
Or

8x = 2
Or

x = 0.25

THE BASIC
DIFFERENTIATION RULES
Some differentiation rules are a snap to remember and use. These
include the constant rule, power rule, constant multiple rule, sum rule,
and difference rule.
The constant rule: This is simple. f (x) = 5 is a horizontal line
with a slope of zero, and thus its derivative is also zero.

The power rule:

To repeat, bring the power in front, then reduce the power by 1.

Thats all there is to it.
The power rule works for any power: a positive, a negative, or a
fraction.

Make sure you remember how to do the last function. Its the
simplest function, yet the easiest problem to miss. By the way,
do you see how finding this last derivative follows the power
rule? (Hint: x to the zero power equals one).
You can differentiate radical functions by rewriting them as power
functions and then using the power rule.

The constant multiple rule: What if the function youre

differentiating begins with a coefficient? Makes no difference. A
coefficient has no effect on the process of differentiation. You just
ignore it and differentiate according to the appropriate rule. The
coefficient stays where it is until the final step when you simplify
your answer by multiplying by the coefficient.

Dont forget that (~3.14) and e (~2.72) are numbers, not

variables, so they behave like ordinary numbers. Constants in
problems, like c and k, also behave like ordinary numbers. So,
for example,

 The sum rule: When you want the derivative of a sum of terms,
take the derivative of each term separately.

The difference rule: If you have a difference (thats subtraction)

instead of a sum, it makes no difference. You still differentiate
each term separately.

The addition and subtraction signs are unaffected by the

differentiation.