Financial curiosity

[Valentin Albillo]

(03-09-2022 11:13 PM)Matt Agajanian Wrote:  I’ve noticed most financial calculations use natural logarithms (base e). Most notably, the Exponential Curve Fit.

It doesn't matter what base (e or 10, say) is used for an Exponential Curve Fit   y = a*e^bx, because the term b would simply absorb the conversion factor between the bases, i.e.,

        y = 3*e^{5 x} = 3*10^{(0.43429*5*x)} = 3*10^{2.17147 x}

so using one base or another is just a matter of taste or convenience if you lack some of the functions. Mathematically, there's no difference.

V.