Power Variable Rule - Applicable to Finance & Accounting
Sydney Matinga
Mar 10
1 min read
Updated: Aug 22
Compound Interest
Principal = $100,000 AUD
Return on Investment = 15%,
Internal Rate of Return = 115% or 1.15
Time elapsed = 7.5 years
= Principal * ( 1.15 / yr ) ^ ( 7.5 yr )
= 100,000 AUD * ( 1.15 / yr ) ^ ( 7.5 yr )
= 285, 255 AUD
The Rule in Brief
log ( x ^ a * unit ) = unit * log ( x ^ a )
= unit * log ( x ^ a ) ,
log ( x ^ a ) unit
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