1. By Cheng Few Lee Joseph Finnerty John Lee Alice C Lee Donald Wort Appendix 3A: Logarithms and their Properties

2. Logarithms were originally developed to simplify computations. Today calculators and computers make this use of logarithms obsolete; nevertheless, they still have useful properties for application in rate of return estimation. If M and N are positive numbers and b is a positive number that is a base, then: From these relations we have

3. Appendix 3A:Logarithms and their Properties Using these relations, some useful properties can be discussed. 1. The logarithm of a product is the sum of the logarithms of the components: 2. The logarithm of a quotient is the logarithm of the numerator minus the logarithm of the denominator. 3. The logarithm of a number raised to a power equals the power times the logarithm of the number. 4. The natural logarithm is in terms of the base e, where e is a number equal to 2.71828. As it turns out, the limit of (1+l/n) = e as n approaches infinity.