Problem: Log of a number close to 1
Problem
Evaluate \(log (1+a)\) for
- \(a=0.1\)
- \(a=0.01\)
- \(a=0.001\)
You should find that \(log (1+a)≈a\) when \(a\) is small. This is an important result in economics.
Solution
Problem
Evaluate \(log (1+a)\) for
You should find that \(log (1+a)≈a\) when \(a\) is small. This is an important result in economics.
Solution