EXP FUNC - DEFINITION

The function 𝑓 defined by

𝑓 𝑥 = 𝑏𝑥

where 𝑏 > 0, 𝑏 ≠ 1, and the exponent 𝑥

is any real number, is called an
exponential function with base 𝑏.
Ex. 𝑓 𝑥 = 2𝑥
EXP FUNC - DEFINITION
The exponential function with base 𝑒 is
of great importance to us in the
finance:
𝑓 𝑥 = 𝑒𝑥

Note that 𝑒 is not a variable!

𝑒 ≈ 2,718281 …
The number 𝑒 is very similar to 𝜋.
Ex. 𝑓 5 = 𝑒 5 ≈ 148,41
EXP FUNC - GRAPH
Table method

1. Choose at least 5 values for 𝑥.

2. Determine the corresponding
values for 𝑦.
3. Plot all the points 𝑥, 𝑦 and connect
with a smooth curve.
EXP FUNC - GRAPH
𝑥
𝑓 𝑥 =2
𝑥 𝑦=𝑓 𝑥 𝑥, 𝑦
−4 −4 1 1
2 = −4,
16 16
−2 −2
1 1
2 = −2,
4 4
0 20 = 1 0, 1
2 22 = 4 2, 4
4 24 = 16 4, 16
EXP FUNC - GRAPH
𝑥
1
𝑓 𝑥 =
2
𝑥 𝑦=𝑓 𝑥 𝑥, 𝑦
−4 16 −4, 16
−2 4 −2, 4
0 1 0, 1
2 1 1
2,
4 4
4 1 1
4,
16 16
EXP FUNC - PROPERTIES
𝑥
If 𝑓 𝑥 = 𝑏 :
1. The domain of any exponential
function is −∞, ∞ .
2. The range of any exponential
function is 0, ∞ .
3. The 𝑦-intercept is 0,1 .
4. There is no 𝑥-intercept.
EXP FUNC - PROPERTIES
𝑥
If 𝑓 𝑥 = 𝑏 :

5.
If 𝑏 > 1, the graph rises from left to
right (increasing).
If 0 < 𝑏 < 1, the graph falls from
left to right (decreasing).
EXP FUNC - PROPERTIES
If 𝑓 𝑥 = 𝑏 𝑥 :
6. If 𝑏 > 1, then the graph approaches (but
never touches) the 𝑥-axis as 𝑥 becomes
more and more negative.
If 0 < 𝑏 < 1, then the graph approaches
(but never touches) the 𝑥-axis as 𝑥
becomes more and more positive.

7. Is one-to-one and thus has an

inverse.
EXP FUNC - RULES
1. 𝑏 𝑥 × 𝑏 𝑦 = 𝑏 𝑥+𝑦 6. 𝑏0 = 1
𝑥
𝑏𝑥 𝑏 𝑏𝑥
2. = 𝑏 𝑥−𝑦 7. = 𝑥
𝑏𝑦 𝑐 𝑐
1
3. 𝑏𝑥 𝑦 = 𝑏 𝑥𝑦 8. 𝑏 −𝑥 = 𝑥
𝑏
𝑥 1
4. 𝑏𝑐 = 𝑏𝑥𝑐 𝑥 9. = 𝑏 𝑥
𝑏 −𝑥
𝑛 𝑚Τ −1 𝑒𝑣𝑒𝑛 = +1
5. 𝑥𝑚 = 𝑥 𝑛 10.
−1 𝑜𝑑𝑑 = −1
EXP FUNC - SIMPLIFY
Use the various exponential rules.
Simplify the following expressions:
2 3 3 4 2 3 3 4
𝑥 −𝑥 𝑥 (−1)(𝑥 )
4 = 4
𝑥2 𝑥2

𝑥 2×3 . 𝑥 3×4 𝑥 6 . 𝑥 12 6+12−1ൗ2

= 2ൗ = 1ൗ =𝑥 = 𝑥 17,5
𝑥 4 𝑥 2
LOG FUNC - DEFINITION
𝑥
If 𝑓 𝑥 =𝑏
the exponential function with base 𝑏
(𝑏 > 0, 𝑏 ≠ 1), then the inverse function

𝑓 −1 𝑥 = log 𝑏 𝑥

is called the logarithm function base 𝑏.

LOG FUNC - DEFINITION
𝒚
𝒚 = 𝒍𝒐𝒈𝒃 𝒙 if and only if 𝒃 = 𝒙

𝑦
If 6 =𝑥 then log 6 𝑥 = 𝑦
𝑦
If 10 = 70 then log10 70 = 𝑦

If log 3 𝑥 = 𝑦 then 3𝑦 = 𝑥
If log 3 𝑥 = 9 then 39 = 𝑥
LOG FUNC - DEFINITION
• Logarithms to the base 10 are called
common logarithms:
log10 𝑥 = log 𝑥

• Logarithms to the base 𝑒 are called

natural logarithms:
log 𝑒 𝑥 = ln 𝑥
LOG FUNC - GRAPH
Table method

1. Choose at least 5 values for 𝑥

where 𝑥 > 0.
2. Determine the corresponding
values for 𝑦.
3. Plot all the points 𝑥, 𝑦 and connect
with a smooth curve.
LOG FUNC - GRAPH
𝑓 𝑥 = ln 𝑥
𝑥 𝑦=𝑓 𝑥 𝑥, 𝑦
−1 Undefined No Point
0 Undefined No Point
1 0 1, 0
2 0.693 2, 0.693
3 1.099 3, 1.099
4 1.386 4, 1.386
5 1.609 5, 1.609
LOG FUNC - GRAPH
𝑓 𝑥 = log 0.5 𝑥
𝑥 𝑦=𝑓 𝑥 𝑥, 𝑦
−1 Undefined No Point
0 Undefined No Point
1 0 1, 0
2 −1 2, −1
3 −1.584 3, −1.584
4 −2 4, −2
5 −2.322 5, −2.322
LOG FUNC - PROPERTIES
If 𝑓 𝑥 = log 𝑏 𝑥 :
1. The domain of any log function is
0, ∞ .
2. The range of any log function is
−∞, ∞ .
3. There is no 𝑦-intercept.
4. The 𝑥-intercept is 1,0 .
LOG FUNC - PROPERTIES
If 𝑓 𝑥 = log 𝑏 𝑥 :
5.
If 𝑏 > 1, the graph rises from left to
right (increasing).

If 0 < 𝑏 < 1, the graph falls from

left to right (decreasing).
LOG FUNC - PROPERTIES
If 𝑓 𝑥 = log 𝑏 𝑥 :
6. If 𝑏 > 1, then the graph approaches (but
never touches) the 𝑦-axis as 𝑦 becomes
more and more negative.
If 0 < 𝑏 < 1, then the graph
approaches (but never touches) the
𝑦- axis as 𝑦 becomes more and more
positive.
7. Is one-to-one and thus has an
inverse.
LOG FUNC - RULES
1. log 𝑏 𝑚 + log 𝑏 𝑛 = log 𝑏 𝑚𝑛

log 7 𝑥 + log 7 3 = log 7 3𝑥

𝑚
2. log 𝑏 𝑚 − log 𝑏 𝑛 = log 𝑏
𝑛

10
log 5 10 − log 5 5 = log 5
5
LOG FUNC - RULES
𝑟
3. log 𝑏 𝑚 = 𝑟. log 𝑏 𝑚

log 7 7𝑥 = 𝑥. log 7 7

4. log 𝑏 1 = 0

log 99 1 = 0
LOG FUNC - RULES
5. log 𝑏 𝑏 = 1
log 4 4 = 1

log𝑐 𝑚
6. log 𝑏 𝑚 = log𝑐 𝑏

log10 3 log 3
log 7 3 = =
log10 7 log 7
log 𝑒 3 ln 3
log 7 3 = =
log 𝑒 7 ln 7
LOG FUNC - RULES
𝑥
7. log 𝑏 𝑏 =𝑥

𝑥 𝑥
log10 10 =𝑥 ln e =𝑥

8. 𝑏log𝑏 𝑥
=𝑥

10log10 𝑥
=𝑥 𝑒 ln 𝑥
=𝑥
LOG FUNC - SIMPLIFYING
Use the various logarithmic rules.
Simplify the following expressions:
5 2 log 𝑥 + 3 log 𝑦 − 2 log 𝑧

= 5 log 𝑥 2 + log 𝑦 3 − log 𝑧 2

𝑥 2𝑦3
= 5 log
𝑧2
2 3 5 10 15
𝑥 𝑦 𝑥 𝑦
= log = log
𝑧2 𝑧 10
LOG FUNC - SIMPLIFYING
1
log + ln 𝑒 3 − log 2 16
10

= log 10−1 + ln 𝑒 3 − log 2 24

= − log 10 + 3 ln 𝑒 − 4 log 2 2
=− 1 +3 1 −4
= −2
EXPONENTIAL EQUATIONS
An exponential equation has the
unknown appearing in an exponent.

We solve the unknown by:

1. Changing from the exponential form
to the logarithmic form:
If 𝑏 𝑦 = 𝑥, then 𝑦 = 𝑙𝑜𝑔𝑏 𝑥

2. 𝑎 𝑥 = 𝑎 𝑦 if and only if 𝑥 = 𝑦.
LOGARITHMIC EQUATIONS
A logarithmic equation is an equation
that involves the logarithm of an
expression containing an unknown.
We solve the unknown by:
1. Changing from the logarithmic form
to the exponential form:
If 𝑦 = 𝑙𝑜𝑔𝑏 𝑥 , then 𝑏 𝑦 = 𝑥.
2. log 𝑎 𝑥 = log 𝑎 𝑦 if and only if
𝑥 = 𝑦.
EXP AND LOG - SOLVING
Solve for 𝑥 in the following equations:
𝑥
2 = 16
𝑥 4
2 =2
∴𝑥=4

2𝑥 = 7
𝑥 = log 2 7
log 7
𝑥=
log 2
EXP AND LOG - SOLVING
log16 4 = 𝑥

∴ 16𝑥 = 4
42𝑥 = 4
∴ 2𝑥 = 1
1
𝑥=
2

Or use your calculator.

EXP AND LOG - SOLVING
log 𝑥 4 = 2
∴ 𝑥2 = 4
𝑥 = ±2
∴𝑥=2

log 4 𝑥 = 2
2
∴𝑥=4
𝑥 = 16
EXP AND LOG - SOLVING
3 ln 2 = 2 ln 𝑥

ln 23 = ln 𝑥 2
∴ 23 = 𝑥 2
𝑥=± 8
∴𝑥= 8
EXP AND LOG - SOLVING
log 2 𝑥 − 2 + log 2 𝑥 − 3 = 1

log 2 𝑥 − 2 𝑥 − 3 = log 2 2
∴ 𝑥−2 𝑥−3 =2
𝑥 2 − 5𝑥 + 6 = 2
𝑥 2 − 5𝑥 + 4 = 0
𝑥−4 𝑥−1 =0
∴ 𝑥 = 4 𝑜𝑟 𝑥 = 1
∴𝑥=4
RADICALS – TERMINOLOGY

𝑛
Index
Radical 𝑎 Radicand
sign

Radical
RADICALS – RULES
𝑛
1. 𝑥×𝑛 𝑦= 𝑛
𝑥𝑦
𝑛
𝑥 𝑛 𝑥
2. 𝑛
=
𝑦 𝑦

𝑚 𝑛
3. 𝑥= 𝑚𝑛
𝑥
𝑛 𝑚Τ
4. 𝑥𝑚 = 𝑥 𝑛
𝑛
5. 𝑥𝑛 = 𝑥
RADICALS – SIMPLIFY
Use the various radical rules.

Ex. Simplify the following expression:

4 4
𝑥2 × 𝑥8
4
𝑥5

4 4 4
𝑥 2 .𝑥 8 𝑥 2+8 𝑥 10 4 𝑥 10 4 4
= 4 = 4 = 4 = = 𝑥 10−5 = 𝑥5
𝑥5 𝑥5 𝑥5 𝑥5

See Section 0.3 for more similar questions.

RATIONALIZING METHODS
1. If the denominator is only a square root,
multiply with the same root.

2
Ex. Rationalize
5
.

2 𝟓
= ×
5 𝟓
2 5
=
5
RATIONALIZING METHODS
2. If the denominator is any other root:

First change to exponents using Radical Law 4:

𝑚 𝑛
𝑥𝑛 = 𝑥𝑚 = 𝑛
𝑥 𝑚

Then, using Exponent Law 1:

𝑥 𝑚 × 𝑥 𝑛 = 𝑥 𝑚+𝑛

determine what you need to multiply with to

eliminate any fractional exponents.
RATIONALIZING METHODS
2
Ex. Rationalize 𝟔 .
𝟑𝒙𝟖

2 2
Since 𝟔 = 1 8
𝟑𝒙𝟖 3 ൗ6 𝑥 ൗ6

1Τ 𝟓ൗ 1 8Τ 𝟒ൗ
Note that: 3 6 ×𝟑 𝟔 =3 𝑥 6 ×𝒙 𝟔 = 𝑥2

𝟓ൗ 𝟒ൗ 5ൗ 4ൗ 𝟔
2 𝟑 𝟔𝒙 𝟔 2 3 6𝑥 6 2. 𝟑𝟓 𝒙𝟒
∴ 1ൗ 8ൗ × = =
3 6𝑥 6
𝟓ൗ 𝟒ൗ
𝟑 𝟔𝒙 𝟔 3𝑥 2 3𝑥 2
RATIONALIZING METHODS
3. If the denominator is a sum or difference of
terms containing a square root, we multiply
with the same expression but with the
opposite sign to obtain the difference of
squares.

2 𝟓−𝟑
Ex. ×
5+3 𝟓−𝟑

2 𝟓+𝟑
Ex. ×
5−3 𝟓+𝟑
RATIONALIZING METHODS
2
Ex. Rationalize
5+3
.

2 𝟓−𝟑
= ×
5+3 𝟓−𝟑
2 5−3
=
5+3 5−3

2 5−3
= 2
5 −𝟑 𝟓+𝟑 𝟓− 3 2
2 5−6
=
5−9
2 5−6
=
−4