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Exponential & Logarithmic Functions

Where this is used

Money that doubles and doubles again, a virus spreading through a city, the magnitude of an earthquake — all of these are described with exponentials and logarithms. They are the tools for getting a grip on things that change fast.

Start gently

An exponent is repeated multiplication. Something that doubles in a day is 1024 times bigger in ten days. Human intuition misjudges this kind of growth every single time.

Key points

Exponential functions

A function of the form y = aˣ. When a > 1 it climbs faster and faster (exponential growth); when 0 < a < 1 it drops away quickly (exponential decay). Money left to earn compound interest grows in exactly this shape.

Laws of exponents

aᵐ × aⁿ = aᵐ⁺ⁿ, aᵐ ÷ aⁿ = aᵐ⁻ⁿ, and (aᵐ)ⁿ = aᵐⁿ. These three rules let you cut a messy calculation down to something short.

What a logarithm is

If aˣ = N, then x = log_a(N). In words: a logarithm answers the question "what power of a gives N?"

Properties of logarithms

A product becomes a sum, a quotient becomes a difference, and a power becomes a multiplier out front. Turning multiplication into addition like this makes hard calculations much easier.

Natural logarithms and e

The number e ≈ 2.718... shows up whenever something grows or decays naturally. The natural logarithm ln(x) = log_e(x) is the version used most in calculus, physics, and finance. Interest compounded continuously is written with e as well: A = Pe^(rt).

See it drawn

Linear growth against exponential growth
xyy = 2ˣ (doubling)y = 10x (fixed step)

The straight line leads at first. Around x = 6 it is overtaken, and from there the gap only widens.

Jobs that use this

Financial Planner$85k

Machine Learning Engineer$150k

Epidemiologist$105k

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