Algebra - Natural Logarithm

Natural Logarithm

Definition and Properties

A natural logarithm is a logarithm with base \( e \), where \( e \approx 2.71828 \) is Euler's number. It is denoted by \( \ln N \), and is commonly used in calculus, mathematical modeling, and exponential growth or decay problems.

Key Formulas

\[ \log_e N = \ln N \]

This expresses that the natural logarithm is the logarithm with base \( e \), and is written as \( \ln N \).

\[ \ln N = x \quad \text{implies} \quad e^x = N \]

This identity means that if the natural logarithm of \( N \) is \( x \), then \( e \) raised to the power of \( x \) equals \( N \).

\[ e = \lim_{n \to \infty} \left( 1 + \frac{1}{n} \right)^n \approx 2.71828 \dots \]

This defines Euler’s number \( e \) as the limit of a sequence. It's an important constant in mathematics, especially in continuous growth models.

Terminology

  • Natural Logarithm: A logarithm with base \( e \), denoted as \( \ln \).
  • Euler's Number (e): An irrational constant approximately equal to 2.71828, used as the base for natural logarithms.
  • Exponential Function: A function where the variable is in the exponent, like \( e^x \), which is the inverse of \( \ln x \).
  • Limit: A mathematical concept used to define the value a function approaches as the input approaches a certain point — used to define \( e \).

Applications

  • Used in solving differential equations in calculus.
  • Essential in modeling exponential growth and decay in biology, physics, and finance.
  • Used in calculating compound interest and continuously compounding returns.
  • Appears in probability theory, particularly in distributions such as the exponential and normal distributions.
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