Linear versus Exponential Growth and Decay

Calculus 1, Lectures 3A and 3B

For f(x)=2\cdot 1.5^{x}, f(x+2)=1.5^{2}f(x), no matter what x is. The exponential function is converting addition of inputs to multiplication of outputs.

Linear functions are constructed from the arithmetic building blocks of repeated addition and subtraction. In a similar manner, exponential functions are constructed from repeated multiplication and division.

These sentences describe both the most basic similarity … Read the rest

Why Does Slicing a Cone Give an Ellipse?

The intersection of the pink plane with the blue cone is an ellipse (shaded orange when y > 0 and brown when y < 0). The length of either red line added to the length of either yellow line is constant. 

Currently my favorite YouTube channel is “3Blue1Brown“, created by Grant Sanderson.

With excellent visuals and high production quality, Grant both shows and explains mathematics in a way that … Read the rest

Financial Mathematics Terms: Effective Versus Nominal Rates of Interest

One of the most confusing topics for many people when starting to learn about financial mathematics is the various ways of measuring compound interest.

Terms like “effective interest rate”, “nominal interest rate”, “continuous interest rate”, and “real interest rate” show up in various articles and textbooks. Exploring the distinctions and relationships between effective and nominal interest rates is the … Read the rest