PLEASE HELP! IM S0 CONFUSED.

What do banks use logarithms for? Be specific.

Question

PLEASE HELP! IM S0 CONFUSED.

What do banks use logarithms for?  Be specific.

chmvijay · Answer

http://beginnersinvest.about.com/lw/Business-Finance/Personal-finance/Calculating-Logarithms-and-Compound-Interest.htm tis may help you

ash2326 · Answer

@danny562 Have you studied Compound Interest?

anonymous · Answer

no?

ash2326 · Answer

That's strange and you are studying logarithms?

ash2326 · Answer

@danny562 ??

anonymous · Answer

yeah idk we just started im confused on the whole subject

ash2326 · Answer

You know that banks give loans and charges interest, and people have fixed deposits in banks and they get interest on them.
For fixed deposits, banks use compound interest, your deposits earn interest per year. The formula for compound interest has rate as a power of a term. 
Do you get this part?

dumbcow · Answer

banks use computer software which implement algorithms which approximate the log function to determine length of loans given int rate and time left to pay off loans