Problema Solution
If $100 is invested at 6% compounded monthly for 7 years the compounded amount is given by Given that log 1.005 = 0.00217, find log A. (Note that 100 = )
Answer provided by our tutors
WE KNOW
A=P(1+R)^N
TAKING LOG BOTH SIDE
LOGA= LOGP +NLOG(1+R)
LOGA= LOG($100) +7LOG(1.006)
LOGA= 2 + 7*0.002597=2.01815
NOTE= WE USE FORMUALE
LOG(AB)=LOGA +LOGB
AND LOG100=2
LOG(1+0.006)=0.002597