Expert: Sherman D. - 10/6/2005

Question
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Thanks again for the fast follow-up. I fear you are way over my head with your explanation, just wondered if there was a way to simply calculate the "power".
sorry for my ignorance
Regard,
Mark Monroe

Answer
most problems when you have Pn = Po(1 + r)^n, you can just divide both sides by Po, then nthrt both sides, but since we don't know "n", i am afraid to tell you this, but the only way i know how is to use logarithms.

b^y = x converts to log(base b)x = y

which you can calculate by just doing

y = (log(x))/(log(b))

info found at the site i gave you.

If you have any trouble with your homework, just send me the problems you are having trouble with and i will help you out, but as far as doing it at school, you just have to remember that

n = (log(Pn/Po))/(log(1 + r))

log(1 + r)(Pn/Po) also equals
log(base (1 + r))(Pn) - log(base (1 + r))(Po)

which can be calculated as

((log(Pn))/(log(1 + r))) - ((log(Po))/(log(1 + r)))
or
(log(Pn) - log(Po))/(log(1 + r))
if either of those make any more since.