About Business Calculus

Introducing Exponential Functions and Logarithmic Functions Exponential and logarithmic functions are used throughout the sciences and are particular useful in business applications. For example, most banks in the world use the exponential function with simple and compond interest. In this topic we concentrate on decay and growth models, which are two different types of exponential functions, and we emphasize graphs and the properties of logarithms. We also show by example how to solve exponential and logarithmic equations.

Interest Problems This topic explains simple interest and compound interest through a series of problems and examples. Compounding continuously and the annual percentage rate is also worked on. Attention is given to the problem of finding the doubling time for an investment. Annuitites differ from ordinary simple and compound interest problems in that payments are made on a regular basis. For eaxmple, monthly, quarterly, semiannual or yearly payments.

Present and Future Value of Annuties This topic illustrates future and present value of annuities using several examples. Also discussed are sinking funds: if a borrower makes periodic deposits that will produce a specified amount on a later specified date, then this borrower has established a sinking fund.

Introducing Loans and Amortization In this topic we detail how amortization is related to the present value of an ordinary annuity and we determine ways to (a) find the unpaid balance of a loan, (b) find the borrowing amount with a budget in mind, and (c) find the number of payments left needed to repay the loan.

Derivatives of Trigonometric Exponential and Logarithmic Functions Formulas for finding the derivative of the trigonometric functions, inverse trigonometric functions, exponential functions, and logarithmic functions are given. These are examples of a special class of cuntions called transcendental functions. Examples are given for using algebraic techniques (quotient rule, product rule, etc.) with these transcendental functions.

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Cite this as:
About Business Calculus
Published by Library of Math -- Online math organized by subject into topics.
Written by Smith, David A.
http://www.libraryofmath.com/about-business-calculus.html