Module 1 · Mathematical Language and Quantitative Reasoning Lesson 5 of 120

Exponents, Roots, and Logarithms

Finding the growth factor and the time it takes.

2:38 clip18:43–21:21 in the full courseWatch on YouTube

Transcript

25 sentences · select one to jump there

Check your understanding

Does the cube root return 5% or 1.05?

Choose one answer

Code lab

Run it yourself

The lesson source in 7 languages. Edit it, run TypeScript and Python right here, and compare with the expected output.

005-exponents-roots-and-logarithms.ts
Start from GitHub
/**
 * Fintech Math Bootcamp · Lesson 005 of 120
 * Exponents, Roots, and Logarithms
 * Module 01: Mathematical Language and Quantitative Reasoning
 *
 * Scenario: Finding the growth factor and the time it takes
 * Rule:     100 × 1.05³ = 115.7625
 *
 * Try it:   Does the cube root return 5% or 1.05?
 *
 * Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/mathematical-language-and-quantitative-reasoning/exponents-roots-and-logarithms/
 * Free course:    https://courses.thefintechbuilder.com
 * Synthetic teaching example, not financial advice or a production library.
 */

export function lesson005() {
  const start = 100, factor = 1.05, periods = 3;
  const future = start * factor ** periods;
  const root = (future / start) ** (1 / periods);
  const doublingPeriods = Math.log(2) / Math.log(factor);
  const result = {future, root, doublingPeriods};
  return result;
}

export const checkedResult = {"future":115.76250000000002,"root":1.05,"doublingPeriods":14.206699082890461};

// Run this file directly: npx tsx lessons/01-mathematical-language-and-quantitative-reasoning/005-exponents-roots-and-logarithms.ts
if (process.argv[1] && import.meta.url.endsWith(process.argv[1].replace(/\\/g, "/").split("/").pop()!)) {
  console.log(JSON.stringify(lesson005(), null, 2));
}

Your output

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Expected output

{
  "future": 115.76250000000002,
  "root": 1.05,
  "doublingPeriods": 14.206699082890461
}

Prefer your own machine? Every file is in the course repository · open it in Codespaces.

Lesson notes

The rule

100 × 1.05³ = 115.7625