EXERCISES (Exponents, Logarithms, and Applications to Compound Interest) In Exercises 1 16, evaluate the expression.

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In Exercises 17-26, determine whether the statement is true or false. Give a reason for your choice. 17. 18. 19.

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26. In Exercises 27-32, rewrite the expression using positive exponents only.

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In Exercises 33-48, simplify the expression. (Assume x, y, r, s, and t are positive.)

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In Exercises 49-58, express the given equation in logarithmic form.

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In Exercises 59-64, use the facts that log 3 = 0.4771 and log 4 = 0.6021 to find the value of the given logarithm.

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In Exercises 65-74, use logarithms to solve the given equation for t.

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75. Find the rate of interest needed for an investment of $5000 to grow to an amount of $7500 in 3 years if interest is compounded monthly. 76. Find the rate of interest needed for an investment of $5000 to grow to an amount of $7500 in 3 years if interest is compounded quarterly. 77. Find the rate of interest needed for an investment of $5000 to grow to an amount of $8000 in 4 years if interest is compounded semiannually. 78. Find the rate of interest needed for an investment of $5000 to grow to an amount of $5500 in 6 months if interest is compounded monthly 79. Find the rate of interest needed for an investment of $2000 to double in 5 years if interest is compounded annually. 80. Find the rate of interest needed for an investment of $2000 to triple in 5 years if interest is compounded monthly. 81. How long will it take $5000 to grow to $6500 if the investment earns interest at the rate of 12% per year compounded monthly?. 82. How long will it take $12,000 to grow to $15,000 if the investment earns interest at the rate of 8% per year compounded monthly? 83. How long will it take an investment of $2000 to double in value if the investment earns interest at the rate of 9% per year compounded monthly? 84. How long will it take an investment of $5000 to triple in value if the investment earns interest at the rate of 8% per year compounded daily? The formula gives the accumulated value, A, of a sum of money, P, that has been invested for a term of t years at an interest rate of r percent compounded continuously. [This formula can be derived from Formula (1) by letting n "approach infinity"-- roughly speaking, a result of compounding more and more frequently.] In Exercises 85-87, use the continuous compound interest formula. 85. Find the rate of interest needed for an investment of $5000 to grow to an amount of $6000 in 3 years if interest is compounded continuously. 86. Find the rate of interest needed for an investment of $4000 to double in 5 years if interest is compounded continuously. 87. How long will it taken an investment of $6000 to grow to a sum of $7000 if the investment earns interest at the rate of 7 % compounded continuously. 88. How long will it take an investment of $8000 to double its value if the investment earns interest at the rate of 8% compounded continuously.

Answers (Exponents, Logarithms, and Applications to Compound Interest)

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3. 1 4. 49 5. 4 6. 729 7. 7 8.

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16. 36 17. True 18. True 19. False 20. False 21. False

22. True 23. False 24. True 25. False 26. True 27.

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59. 1.0792

60. -0.125 61. 1.2042 62. 0.2386 63. 1.6813 64. -2.4771 65. 5.1986 66. 0.3311 67. 0.0912 68. 1 69. 8.0472

70. 5.4931 71. 4.9041 72. 3.6620 73.

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75. 13.59% per yr 76. 13.75% per yr 77. 12.1% per yr 78. 19.21% per yr 79. 14.87% per yr 80. 22.17% per yr 81. 2.2 yr 82. 2.8 yr 83. 7.7 yr 84. 13.7 yr 85. 6.08% per yr 86. 13.86% per yr 87. 2.06 yr 88. 8.66 yr