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Logarithm For MBA

The document discusses the concept of logarithms. It begins by explaining that logarithms were introduced in the early 17th century and greatly reduced computations in areas like finance and engineering. It then defines logarithms mathematically as the power to which a base number must be raised to equal the value. The document provides several examples of evaluating logarithmic expressions. It discusses common and natural logarithms, and the laws of logarithms which allow simplifying expressions. The document concludes with an example using logarithms to solve a compound interest word problem.
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0% found this document useful (0 votes)
213 views8 pages

Logarithm For MBA

The document discusses the concept of logarithms. It begins by explaining that logarithms were introduced in the early 17th century and greatly reduced computations in areas like finance and engineering. It then defines logarithms mathematically as the power to which a base number must be raised to equal the value. The document provides several examples of evaluating logarithmic expressions. It discusses common and natural logarithms, and the laws of logarithms which allow simplifying expressions. The document concludes with an example using logarithms to solve a compound interest word problem.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Logarithm

The concept of logarithm was introduced by a Scot, John Napier and independently by J. Burgi of
Switzerland in the beginning of the 17 th century. From then until the early part of this century,
logarithms greatly reduced both the time and the effort required for the many computations in such areas
as finance, astronomy, navigation, and engineering. Logarithms are used extensively in numerical
calculations.
For a  0 and a  1 , If a x  y , then the index x is called the logarithm of the number y with respect
to the base a and write x  log a y .
Again if x  log a y , then we can write a x  y .
i.e., a x  y and x  log a y are equivalent which mathematically expressed as y  a x  log a y  x .
From this relation we can say, log a (a x )  x .
Ex. Find log10 (1000) .
Solution: We express 1000 as 10 3 . Then log10 (1000)  log10 (10 3 )  3
Ex. Find log 4 (16) .
Solution: Since 16  4 2
 log 4 (16)  log 4 (4 2 )  2
Ex. Evaluate log10 (0.01) .
  log10 10   2
 1  2
Solution: log10 (0.01)  log10 
 100 
Ex. Evaluate log 5 5
 
Solution: log 5 5  log 5 5 2 
1
2
1

Caution: log a (0) is not defined as we can not write 0 in the form a x . Similarly log a ( 1) is not
defined as we can not write  1 in the form a x .

Ex. Solve log10 (2 x  3)  4


Solution: Since log a y  x and y  a x are equivalent. We can write
log10 ( 2 x  3)  4  2 x  3  10 4
 2 x  3  10000
 2 x  10000  3
 2 x  10003
10003
x
2
Laws of logarithm:
1. log a ( xy)  log a x  log a y
x
2. log a y  log a x  log a y
3. log a x p  p log a x
log c b
4. log a b 
log c a
1
5. log a b 
log b a
By using these laws we can solve equations involving log . For instance
Ex. 2 log 2 x  log 2 4  4
Solution: Given that
2 log 2 x  log 2 4  4
or, log 2 x 2  log 2 4  4 [by law 1]
or, log 2 ( x 2  4)  4
or, 4 x 2  2 4
or, 4 x 2  16
or, x 2  4
or, x  2
But x  2 is not valid as log 2 ( 2) is not defined.
 x  2 is solution.
The above laws enable us to write expressions involving several log terms as a single logarithm. e.g.
log 2 y  2 log 2 x  log 2 a  log 2 b
= log 2 y  log 2 b  log 2 x 2  log 2 a
= log 2 y  log 2 b  (log 2 x 2  log 2 a)
= log 2 ( yb)  log 2 ( x 2 a )
yb
= log 2 2 .
x a
Common Logarithm and Natural Logarithm
Logarithms to the base ‘10 ’ are called common logarithms since they were the most convenient to use
on numbers in the base-10(decimal) system. Because common logarithms were used so frequently in
practice, the base was omitted. i.e., log x means log10 x .
Thus
log1  log10 0  0
log10  1
log100  log102  2 log10  2
 1 
log 0.1  log   log10 1  1log10  1
 10 
Today most applications of logarithms use the base ‘ e ’. These logarithms are called natural logarithms
or Napierian logarithms. To simplify the notation, the natural logarithm log e x is abbreviated to ln x .
i.e., ln x means log e x .
Thus
ln1  0
ln e  1
ln e 2  2 ln e  2
1
ln    ln e 1  1(ln e)  1
e
In theoretical calculations, the base ‘ e ’ is used whereas for numerical calculations, the base ‘10 ’ is
used most conveniently.
Ex: Suppose that Rahim has Tk. 1,000 to invest and finds that interest can be earned at the rate of 6
percent compounded annually. Rahim wants to know how many years it will take for his investments of
Tk. 1,000 to grow to Tk. 2,000 .
Solution:
We know that for compound interest 1,000(1.06) n  2,000 , where n is the number of years. Here
the unknown is an exponent, and so logarithms are needed to determine the value.
Therefore
1,000(1.06) n  2,000
2000
or, (1.06) 
n

1000
or, (1.06)  2
n

Taking log on both sides, we get


log(1.06) n  log 2
or, n log1.06  log 2
log 2
or, n  log1.06
n  11 .896
So it will take 11 .896 years (about 12 years) for Rahim’s investment of Tk. 1,000 to grow to Tk.
2,000 .
This example indicates clearly that the time value of money in the business world is very dependent
upon exponential functions.

Ex. Prove that log(1  2  3)  log1  log 2  log 3 [D.U.H ’74]


Solution:
L.H.S log(1  2  3)  log 6  log(1  2  3)  log1  log 2  log 3 =R.H.S.

Ex. Simplify log a b  log b c  log c d  log d a [D.U.H ’74, ’76]

Solution: We change the base of each log to base e .


log e b log e c log e d log e a
log a b  log b c  log c d  log d a     1
log e a log e b log e c log e d
16 25 81
Ex. Simplify 23 log  17 log  10 log [D.U.H ’78]
15 24 80
16 25 81
Solution: 23 log  17 log  10 log
15 24 80
23 17 10
 16   25   81 
= log   log   log 
 15   24   80 
23 17 10
 24   52   34 
= log   log   log 
 3 5 38  5  16 
23 17 10
 24   52   34 
= log    log 
3 
 log  
4 
 3 5  3 2  5 2 
 2 92   534   340 
= log 23 23   log 17 
51 
 log  10 
40 
3 5  3 2  5 2 
 2 92 534 340 
= log 
 323  5 23 317  2 51 510  2 40 
 
 
 2 92  534  340 
= log 
 2 51  40  323  17  5 23  10 
 
2 5 3 
92 34 40

= log 91 40 33 

 2 3 5 
= log(2  5)
= log10
=1
81 3 2 3
Ex. Evaluate log  2 log  log  log [D.U.H ’77, ’88, ’94]
80 2 3 4
Solution:
81 3 2 3
log  2 log  log  log
80 2 3 4
2
34 3 2 3
= log  log   log  log 2
5  16 2 3 2
2
34 3 2 3
= log  log   log  log 2
5 2 4
2 3 2
2
34 3 2 3
= log  log 2  log  log 2
5 2 4
2 3 2
3 4
2  3 2
3
= log  log   log 2  log 2 
5 2 4
3  2 2 
34  2 32  3
= log  log 2
5  24  3 2  22
3 2
4
321
= log  log 2 2
5  24  3 2
3 2
4
33
= log  log 4
5  24  3 2
3 2
4
2 4
= log  3
5 2 3 3
4

34  21 4
= log
5  2 4  313

34  2 5
= log
5  2 4  34
2
= log
5
Ex. Show that log 2 10  log 8 125  1 [D.U.H ’78]
Solution:
L.H.S. log 2 10  log 8 125
log10 log125
= log 2  log 8
log10 log 53
= 
log 2 log 2 3
log10 3 log 5
= log 2  3 log 2
log10 log 5
= log 2  log 2
= log 2 10  log 2 5
10
= log 2
5
= log 2 2
=1
16 25 81
Ex. Prove that log10 2  16 log10  12 log10  7 log10 1 [D.U.H ’80; N.U.H ’2003]
15 24 80
Solution:
16 25 81
L.H.S. log10 2  16 log10  12 log10  7 log10
15 24 80
16 25 81
= log10 2  16 log10  12 log10  7 log10
15 24 80
16 12 7
 16   25   81 
= log10 2  log10    log10    log10  
 15   24   80 
16 12 7
 24   52   34 
= log10 2  log10    log10  
3 
 log10 
 5  2 4 
 3 5  3 2   
 2 64   5 24   328 
= log10 2  log10  16 16   log10  12 36   log10  7 
28 
3 5  3 2  5 2 
 2  2 64  5 24  328 
= log 
10  16 
28 
3 5 3 2 5 2 
16 12 36 7

 2164  5 24  328 
= log 10 
 31612  5167  2 36 28 
 
2 5 3 
65 24 28

= log10  28 
64 
3 5 2 
23

= log10 ( 2  5)
= log10 10
= 1 = R.H.S. (Proved)
3 27  0
3
Ex. Show that log 2 log 2 log 3 log [D.U.H. ’92]
Solution:
L.H.S. log 2 log 2 log 3 log 3 27 3
= log 2 log 2 log 3 log 3  33 
3

 
= log 2 log 2 log 3 log 3 39
= log 2 log 2 log 3 (9 log 3 3)
= log 2 log 2 log 3 (9)
= log 2 log 2 log 3 (32 )
= log 2 log 2 (2 log 3 3)
= log 2 log 2 (2)
= log 2 1
= log 2 2 0
= 0
Ex. Solve the equation 3 x.7 2 x 1  11 x 5
Solution:
Taking logarithm on both sides, we get
log[3 x.7 2 x 1 ]  log11 x 5
or, log 3 x  log 7 2 x 1  log11x 5
or, x log 3  (2 x  1) log 7  ( x  5) log11
or, x log 3  2 x log 7  log 7  x log11  5 log11
or, x log 3  2 x log 7  x log11  5 log11  log 7
or, x(log 3  2 log 7  log11)  5 log11  log 7
5 log11  log 7
or, x  log 3  2 log 7  log11
5.2070  .8451
or, x 
.4771  1.6902  1.0414
4.3619
or, x   3.8 (approximate)
1.1259
Ex. Solve 2 x.32 x  100
Solution:
Given that 2 x.32 x  100 .
Taking log on both side
log(2 x.32 x )  log100
or, log 2 x  log 32 x  log100
or, x log 2  2 x log 3  log10 2
or, x(log 2  2 log 3)  2 log10
2
or, x  log 2  2 log 3
2
or, x 
.30103  .95426
2
or, x   1.593
1.2552726
Ex. Solve 32 x  3 x1  2  0
Solution:
32 x  3 x 1  2  0
or,  3 x   3.3 x  2  0 ------------- (i)
2

Let 3 x  y , then (i) becomes


y 2  3y  2  0
or, y 2  2 y  y  2  0
or, y ( y  2)  1( y  2)  0
or, ( y  2)( y  1)  0
y  2 or y  1
If y2
or, 3 x  2
or, log 3 x  log 2
or, x log 3  log 2
log 2 .30103
or, x  log 3  .47712  .6309
If y 1
or, 3x  1
or, log 3 x  log1
or, x log 3  0
or, x0
 x  0, 0.6309
Exercise
1. If a  log 24 12, b  log 36 24 and c  log 48 36 , then prove that 1  abc  2bc [D.U.H ’82]
4 log 5  log 3 5 log 3  3 log 5
2. Simplify (i) (ii) [D.U.H ’85]
2 log15 3 log15  2 log 3
log 27  log 8  log 1000
3. Evaluate [D.U.H ’85, ’92]
log1.2
4. Show that log 3 log 2 log 2 256  1 [D.U.H ’91]
15 8 2 32
5. Prove that 7 log  6 log  5 log  log  log 3
16 3 5 25

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