Exponential and Logarithmic Functions (Problem Set 5 – 1)

Part-II

Nonlinear Relationships with

Applications in Business and Finance

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Bowen, Prichett & Saber’s Mathematics Manual

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)

Problem Set 5 – 1
Text: E. K. Bowen, G. D. Prichett & J. C. Saber
Solutions: Muhammad Shamim

Evaluate each of the expressions in Problems 1 though 10:

1 4(43)

Solution:
Given 4(43)
= 44
= 256 [Ans.]

2 64½

Solution:
Given 64½
= (82)½
= 8 [Ans.]

3 272/3

Solution:
Given 272/3
= (33)2/3
= (3)2
= 9 [Ans.]

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½ ½
4 (8 )(2 )

Solution:
Given (8½)(2½)
= (8  2)½
= (16)½
= (42)½
= 4 [Ans.]

5 (1/5) – 2

Solution:
Given (1/5) – 2
= (5 – 1) – 2
= 52
= 25 [Ans.]

6 [(9½)(92)]1/5

Solution:
Given [(9½)(92)]1/5
= [(3)(34)]1/5
= [35]1/5
= 3 [Ans.]

7 [(3 – 1)(32/3)]3

Solution:
Given [(3 – 1)(32/3)]3
= (3 – 3)(32)
= 3–1
= 1/3 [Ans.]

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
8 (e )(e4)
2

Solution:
Given (e2)(e4)
= e6
= 403.4288 [Ans.]

9 (e3)– 2

Solution:
Given (e3)– 2
= e–6
= 1/e6
= 1/403.4288 [Ans.]
= 0.0025 [Ans.]

10 (1/e) – 4

Solution:
Given (1/e) – 4
= e4
= 54.5982 [Ans.]

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Sketch a graph of the exponential functions in Problems 11
though 28:

11 f(x) = 3x

Solution: Table values of f(x) = 3x

x f(x) = 3x
–3 1/27
–2 1/9
–1 1/3
0 1
1 3
2 9
3 27

f(x)

3  (1, 3)

(0, 1)  1

–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)
Fig: Graph of f(x) = 3x

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
12 f(x) = 12x
Solution: Table values of f(x) = 12x
x f(x) = 12x
–3 1/1728
–2 1/144
–1 1/12
0 1
1 12
2 144
3 1728

f(x)

12  (1, 12)

–3 –2 – 1 (0, 1)  1 2 3
x 0 x

–4

–8

f (x)
x
Fig: Graph of f(x) = 12

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–x
13 f(x) = 4

Solution: Table values of f(x) = 4– x

x f(x) = 4– x
–3 64
–2 16
–1 4
0 1
1 1/4
2 1/16
3 1/64

f(x)
3

(0, 1)  1
(1, 1/4)
–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)

Fig: Graph of f(x) = 4– x

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
14 f(x) = (1/5)x

Solution: Table values of f(x) = (1/5)x

x f(x) = (1/5)x
–3 125
–2 25
–1 5
0 1
1 1/5
2 1/25
3 1/125

f(x)
3

(0, 1)  1
(1, 1/5)
–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)

Fig: Graph of f(x) = (1/5)x

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 Bowen, Prichett & Saber’s Mathematics Manual
15 f(x) = (1/4)– x

Solution: Table values of f(x) = (1/4)– x

x f(x) = (1/4)– x
–3 1/64
–2 1/16
–1 1/4
0 1
1 4
2 16
3 64

f(x) 4  (1, 4)

(0, 1)  1

–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)
Fig: Graph of f(x) = (1/4)– x
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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
16 f(x) = 2– x

Solution: Table values of f(x) = 2– x

x f(x) = 2– x
–3 8
–2 4
–1 2
0 1
1 1/2
2 1/4
3 1/8

f(x) 4

(0, 1)  1
(1, 1/2)
–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)
Fig: Graph of f(x) = 2– x
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–x
17 f(x) = 3

Solution: Table values of f(x) = 3– x

x f(x) = 3– x
–3 27
–2 9
–1 3
0 1
1 1/3
2 1/9
3 1/27

f(x) 4

(0, 1)  1
(1, 1/3)
–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)
Fig: Graph of f(x) = 3– x

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
18 f(x) = 2x + 1

Solution: Table values of f(x) = 2x + 1

x f(x) = 2x + 1
–3 9/8
–2 5/4
–1 3/2
0 2
1 3
2 5
3 9

f(x) 8

 (1, 3)
(0, 2)  2

–3 –2 –1 1 2 3
x 0 x

–2

–4

f (x)

Fig: Graph of f(x) = 2x + 1

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–x
19 f(x) = 2 + 3

Solution: Table values of f(x) = 2– x + 3

x f(x) = 2– x + 3
–3 11
–2 7
–1 5
0 4
1 7/2
2 13/4
3 25/8

f(x) 8

(0, 4)  4 (1, 7/2)



–3 –2 –1 1 2 3
x 0 x

–2

–4

f (x)
Fig: Graph of f(x) = 2– x + 3

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
20 f(x) = 2x/2

Solution: Table values of f(x) = 2x/2

x f(x) = 2x/2
–3 1/16
–2 1/8
–1 1/4
0 1/2
1 1
2 2
3 4

f(x) 4

1  (1, 1)

–3 –2 – 1 (0, 1/2)  1 2 3
x 0 x

–1

–2

f (x)
Fig: Graph of f(x) = 2x/2

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2x
21 f(x) = e

Solution: Table values of f(x) = e2x

x f(x) = e2x
– 3 e– 6 = 0.0025
–2 e– 4 = 0.02
–1 e– 2 = 0.14
0 1
2
1 e = 7.39
2 e2 = 54.60
3 e6 = 403.43

f(x)
9

 (1, 7.39)
6

–3 –2 – 1 (0, 1)  1 2 3
x 0 x

–3

–6

f (x)
Fig: Graph of f(x) = e2x

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
22 f(x) = ex/e

Solution: Table values of f(x) = ex/e

x f(x) = ex/e
–3 0.02
–2 0.05
–1 0.14
0 0.37
1 1
2 2.72
3 7.39

f(x)
3

1 (0, 1)

–3 –2 –1 (1, 0.37) 1 2 3
x 0 x

–1

–2

f (x)
Fig: Graph of f(x) = ex/e
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x+1
23 f(x) = 2

Solution: Table values of f(x) = 2x + 1

x f(x) = 2x + 1
–3 ¼
–2 ½
–1 1
0 2
1 4
2 8
3 16

f(x)
6

4  (1, 4)

(0, 2)  2

–3 –2 –1 1 2 3
x 0 x

–2

–4

f (x)

Fig: Graph of f(x) = 2x + 1

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
24 f(x) = 3x – 1

Solution: Table values of f(x) = 3x – 1

x f(x) = 3x – 1
–3 1/81
–2 1/27
–1 1/9
0 1/3
1 1
2 3
3 9

f(x)
9

3 (1, 3)

–3 –2 –1 (1, /13) 1 2 3
x 0 x

–3

–6

f (x)

Fig: Graph of f(x) = 3x – 1

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25 f(x) = (1/3)– x

Solution: Table values of f(x) = (1/3)– x

x f(x) = (1/3)– x
–3 1/27
–2 1/9
–1 1/3
0 1
1 3
2 9
3 27

f(x)
5

3  (1, 3)

(0, 1)  1

–3 –2 –1 1 2 3
x 0 x

–1

–3

f (x)

Fig: Graph of f(x) = (1/3)– x

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
26 f(x) = 4x/2

Solution: Table values of f(x) = 4x/2

x f(x) = 4x/2
–3 1/16
–2 ¼
–1 ½
0 1
1 2
2 4
3 16

f(x)
3

2  (1, 2)

(0, 1)  1

–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)

Fig: Graph of f(x) = 4x/2

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2
27 f(x) = 2 x
2
Solution: Table values of f(x) = 2x
x f(x) = 2x 2

–3 512
–2 16
–1 2
0 1
1 2
2 16
3 512

f(x)
3

(– 1 , 2)  2  (1, 2)

(0, 1)  1

–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)
2
Fig: Graph of f(x) = 2x

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
2
28 f(x) = 2  x
2
Solution: Table values of f(x) = 2 x
x f(x) = (1/5)x
–3 1/512
–2 1/16
–1 ½
0 1
1 ½
2 1/16
3 1/512

f(x)
3

(0, 1)  1
(– 1, 1/2)  (1, 1/2)
–3 –2 –1 1 2 3
x 0 x

–1

–2

f (x)
2
Fig: Graph of f(x) = 2 x

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29 (a) What is the value of an account with an initial deposit of $1
and an annual return of 5 percent after 5 years? After 10 years?

(b) Make a table that shows the account value after each of the
first 10 years.

Solution: (a) Given

Initial deposit (PV) = $1
Annual return (i) = 5% = 0.05

 After 5 years, the future value (FV) = PV(1 + i)n

= $1(1 + 0.05)5
= $1.28

 After 10 years, the future value (FV) = PV(1 + i)n

= $1(1 + 0.05)10
= $1.63

(b)
Table of Annual Growth
Year (n) FV of $1 = $1(1 + 0.05)n
1 $1.05
2 $1.10
3 $1.16
4 $1.22
5 $1.28
6 $1.34
7 $1.41
8 $1.48
9 $1.55
10 $1.63

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 Exponential and Logarithmic Functions (Problem Set 5 – 1)
30 Find the value of $25000 invested in an account yielding 7 percent
annually after 3 years. After 5 years.

Solution: Given
Initial deposit (PV) = $25000
Annual return (i) = 5% = 0.07

 After 3 years, the future value (FV) = PV(1 + i)n

= $25000(1 + 0.07)3
= $30626.08

 After 5 years, the future value (FV) = PV(1 + i)n

= $25000(1 + 0.07)5
= $35063.79

31 Take a piece of paper 0.001 inches thick, tear it in half, and stack
the two pieces. Now take the stack and tear it in half, stacking the
resulting pieces. Guess how thick the pile will be if this is repeated
for a total of 10 times. 25 times. 50 times. Now compute the actual
values and compare them with your guesses.

Solution: Given
Initial thickness (A) = $25000
Each time double growth (r) = 2

 Stacking 10 times, the total thickness (T) = A(r)n

= 0.001(2)10
= 1.024 inches [Ans.]

 Stacking 25 times, the total thickness (T) = A(r)n

= 0.001(2)25
= 33554.432 inches [Ans.]

 Stacking 50 times, the total thickness (T) = A(r)n

= 0.001(2)50
= 1125899906842.624
inches [Ans.]

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32 Explain the difficulty in predicting exponential growth and the
relative case in predicting linear growth.

Solution: Explanation: Linear growth can easily be predicted by

extrapolating from the past since the slope of any line is constant.
Exponential growth has changing slope and so requires more
sophisticated analysis than linear growth.

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