Expert: Ahmed Salami - 5/21/2010

Question
Hello,
I am studying CIMA, which is a management and accountancy course in UK. After long time, I have encountered with logarithms and got stuck somewhere. This looks really simple but I couldn't solve it. Any kind of help would be appreciated.

PROBLEM:
log rate = 0.2180533 x log2
log rate = -0.0656405 (I have understood this so far)
So, rate = 0.8597 i.e. 86%

now, I didn't get the last bit. how it comes to the last result? Thank you in anticipation.

Answer
Hi Ketul,
If log x = y, then x = 10^y (10 to the power y)
Now we have taken log x to mean logarithm of x to base 10. If we were working with some other logarithm base the same relationship still holds, we just replace 10 on the right hand side by whatever the base is.
I'm not sure how you got a negative sign on the second line, but of course from there
rate = 10^(-0.0656405)
    = 0.8597

Good luck.

Regards