Algebra 2 Companion Book, Volume 2

7.2.2 The Natural Base, e (continued)

Example 2 Simplifying Expressions with e or ln The properties of logarithms also apply to natural logarithms.

Example 3 Economics Application The formula for continuously compounded interest is A = Pe rt , where A is the total amount, P is the principal, r is the annual interest rate, and t is the time in years.

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