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MAT 1161, Business Math, Sean Forman

Spring 2004

• Interest Compounded Continuously: $A = Pe^{rt}$.

• Interest Compounded $m$ times per year: $A = P(1 + \frac{r}{m})^{mt}$.

• Profit = Revenue - Cost.

• Revenue = price $\times$ number sold.

• Log Rules (can also exchange $\log$ for $\ln$ and 10 for $e$.
  1. $\ln(MN) = \ln(M) + \ln(N)$.
  2. $\ln(\frac{M}{N}) = \ln(M) - \ln(N)$.
  3. $M \ln(N) = \ln(N^M)$.
  4. $e^{\ln(N)} = N$.
  5. $\ln(e^N) = N$.
  6. $\ln(1) = 0$.
  7. $e^0 = 1$.

• Relative rate of change of $f(t)$ is $${\frac{f'(t)}{f(t)}}$$.

• The elasticity of demand $D(p)$ is $${\frac{-p D'(p)}{D(p)}}$$.