03-13-2008, 11:29 AM
4dkids Wrote:[SIZE="6"]My hopes are that some kind soul will take a moment to explain how log is used in this problem:[/SIZE]
1.333 = (1+I)[SIZE="1"]n[/SIZE]
log 1.3333 = 4 log (1+I)
0.1248 = 4 log (1+I)
.0312 = log (1+I)
1.075 = 1+I
By what means does 'log 1.333' equal 0.1248?:o
Thank you, in advance, for your help
I don't personally know the answer--although it all looks vaguely familiar--like a 25 year old memory--but here's a link to a page that explains logarithms and includes examples which look helpful. I'm studying for Principles of Finance next month and if I come across anything that looks like this I'll likely just skip it. I don't recall seeing anything about logs in the specific feedback section...