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Math function
EXP
Returns e raised to the given power.
OccasionalDifficulty 1200 · ProficientUsage rank #188 of 520
When to use it
Returns e raised to a power. It is the inverse of LN and shows up in continuous compounding, exponential decay, and the normal distribution.
The shape of it
- Syntax
=EXP(number)
Worked examples
The constant
=EXP(1) → 2.718281828
The constant e itself.
Zero
=EXP(0) → 1
Anything to the zero.
Continuous compounding
=100*EXP(0.05*3) → 116.1834243
100 invested for 3 years at 5% continuously compounded.
Worth knowing
- Undo an LN with EXP: if y = LN(x) then x = EXP(y).
- Growth that is "continuous" in a model (decay, half-lives) uses EXP(-k*t).
- Convert a continuous rate to an annual one with EXP(r)-1.
Where it goes wrong
- #NUM! when the exponent exceeds about 709 (the result overflows).
- Using EXP where discrete compounding was meant overstates growth slightly.
Related
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