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November 2nd, 2011, 05:12 PM   #1
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Difficult Local Linearization Problem

The "rule of 70" is used o estimate the number of years it will take for the money in a bank account to double based of the interest rate, i%. The rule states that the amount will take 70/i years to double. Find the local linearization of ln(x+1) and explain how this proves that the rule works.

So I understand how the find the local linearization. It would be L(x)=ln(a+1)+((x-a)/(1+a)). But how does this relate to the rule? I'm completely lost after this point. Any help?
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November 3rd, 2011, 06:12 PM   #2
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Re: Difficult Local Linearization Problem

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November 3rd, 2011, 09:08 PM   #3
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Re: Difficult Local Linearization Problem

Thank you!!
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