Using Exponential & Logarithmic Functions to Solve Finance Problems


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question 1 of 3

What is the inverse of y = ln(2x)?

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1. What is the inverse of y = ln(x - 2)?

2. If a principal, P = $100 were invested with an interest rate of 50%, r = 0.50 over a time (t )of 1 year compounded continuously, what would be the principal plus return on rate be?

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About This Quiz & Worksheet

How do you solve inverse problems? What concepts would you apply to solve return on rate problems? You will need to be knowledgeable about these topics in order to successfully answer all questions found on this quiz/worksheet assessment.

Quiz & Worksheet Goals

When you take this quiz, you will be expected to:

  • Understand compound interest
  • Determine the inverse of given functions
  • Apply specific functions to calculate the return on rate in sample problems

Skills Practiced

  • Problem solving - use acquired knowledge to solve inverse practice problems
  • Information recall - access the knowledge you've gained regarding compound interest
  • Knowledge application - use your knowledge to answer questions about principal plus return on rate

Additional Learning

Refer to the lesson titled Using Exponential & Logarithmic Functions to Solve Finance Problems to learn more about this topic. You will have the opportunity to find out:

  • What Euler's Number refers to
  • How the natural logarithmic function is defined
  • What the function y = In x looks like graphically