Exponential: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson m (Add category.) |
||
| Line 1: | Line 1: | ||
1. | 1. ''Maths - constant.'' | ||
The exponential ''constant'' is a mathematical constant with a value of roughly 2.718282..., usually denoted by the letter ''e''. | The exponential ''constant'' is a mathematical constant with a value of roughly 2.718282..., usually denoted by the letter ''e''. | ||
2. | 2. ''Maths - function.'' | ||
The related exponential ''function'' is ''e''<sup>x</sup> (''e'' to the power of x). The exponential function in Excel is =EXP( ). The exponential function is the inverse of the natural logarithm. | The related exponential ''function'' is ''e''<sup>x</sup> (''e'' to the power of x). The exponential function in Excel is =EXP( ). The exponential function is the inverse of the natural logarithm. | ||
3. | 3. ''Growth.'' | ||
Exponential ''growth'' means growth other than straight-line. | Exponential ''growth'' means growth other than straight-line. | ||
For example the series 100, 200, 400... is growing exponentially. | |||
Exponential ''decay'' means the reduction in a variable, for example over time, on a basis other than straight-line. | 4. ''Decay.'' | ||
Exponential ''decay'' means the reduction in a variable, for example over time, on a basis other than straight-line. | |||
For example the reduction in the time value of an option, as its remaining time to maturity expires. | |||
| Line 23: | Line 27: | ||
* [[Natural logarithm]] | * [[Natural logarithm]] | ||
* [[Time value]] | * [[Time value]] | ||
[[Category:The_business_context]] | |||
Revision as of 16:48, 25 March 2021
1. Maths - constant.
The exponential constant is a mathematical constant with a value of roughly 2.718282..., usually denoted by the letter e.
2. Maths - function.
The related exponential function is ex (e to the power of x). The exponential function in Excel is =EXP( ). The exponential function is the inverse of the natural logarithm.
3. Growth.
Exponential growth means growth other than straight-line.
For example the series 100, 200, 400... is growing exponentially.
4. Decay.
Exponential decay means the reduction in a variable, for example over time, on a basis other than straight-line.
For example the reduction in the time value of an option, as its remaining time to maturity expires.
