Solution.

We find the derivative p� (t), and we set it equal√

to zero. Using the
√ Chain Rule for Ex-
� −0.09t+ t/2
ponential Functions, we have that p (t) = 300000e · (−0.09 + 1/4 t). Observe that
√
� �
� −0.09t+ t/2 1
0 = p (t) = 300000e · − 0.09 + √ if and only if
4 t

1
0 = −0.09 + √ if and only if
4 t

1
√ = 0.09 if and only if
4 t

√ 1
t= if and only if
0.36

� �2
1
t= ≈ 7.72.
0.36

Checking p� (t) for t = 0, 7.72, and 10, we find that

p(0) = 300000 < p(10) = 592838 < p(7.72) = 600779.

We conclude by the Extreme Value Theorem that the maximum present value of the building’s
market price will be a whopping $600,779 in approximately 7.72 years. �

5.4 Differentiation of Logarithmic Functions

Using the fact that ex is its own derivative in combination with the observation that ex and ln x
are inverse function, we will now find the derivative of ln x.

Derivative of the Logarithmic Function. Given that f (x) = ln |x|, we have that f � (x) = x1 .

Proof. Let x > 0. Let f (x) = ln x. Using the fact that ln x is the inverse function of ex , it follows
that x = eln x = ef (x) . By taking the derivative of both sides with respect to x, it follows that
1 = ef (x) · f � (x) = x · f � (x). By dividing both sides by x, we find that f � (x) = x1 , as desired.
We can find the derivative of the logarithmic function ln x directly from the definition of the deriva-
tive, but I have reserved this problem as bonus.

5.4.1 Chain Rule for Logarithmic Functions

Like with exponential functions, there is a chain rule for logarithmic functions.

Chain Rule for Logarithmic Functions. Given a differentiable function f (x) > 0, consider
� (x)
the composite function h(x) = ln[f (x)]. We have that h� (x) = ff (x) .

Proof. Observe that h(x) = g(f (x)), where g(x) = ln x. Using the Chain Rule and the fact that
g � (x) = x1 , we have that h� (x) = g � (f (x)) · f � (x) = f (x)
1
· f � (x).

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Using the Product, Quotient, and Chain Rule for Logarithmic Functions. Compute
the derivatives of the following functions.

(a.) f (x) = x · ln x
ln x
(b.) g(x) =
x
(c.) h(x) = ln(x2 + 1)

(d.) p(x) = ln[(x2 + 1)(x3 + 2)6 ]

2
(e.) q(x) = ln(x2 · e−x )

5.4.2 Logarithmic Differentiation

Occasionally, the task of finding the derivative of a complicated function can be made easier by
considering the logarithm of the function. For instance, when the function in question is the prod-
uct or quotient of some parts that are easily differentiable, we can rewrite the function in ques-
tion as a logarithm in order to rewrite products as sums and quotients as differences.

Using Logarithmic Differentiation. Compute the derivative of the following functions using
logarithmic differentiation.

(a.) y = x(x + 1)(x2 + 1)

(b.) y = x2 (x − 1)(x2 + 4)3

Quick Logarithmic Differentiation. Let y = f (x) be a differentiable function of x. Use the

following algorithm to perform logarithmic differentiation.

1.) Consider the natural logarithm of y. We have that ln y = ln[f (x)]. Rewrite all sums on the
right-hand side as products, all quotients as differences, and all exponents as coefficients.
d 1 dy
2.) Differentiate both sides with respect to x. Observe that dx
(ln y) = y
· dx
.
dy
3.) Solve for dx
. Rewrite y in terms of x.

Population Growth. Economists at the University of Michigan estimate that the population
of a town t months after opening an auto assembly plant in the surrounding area is given by the
−0.3t
function P (t) = 18000e−(ln 9)·e for t ≥ 0. What is the relative rate of growth of the population
6 months after the opening of the auto assembly plant?

Solution. Use logarithmic differentiation to compute the derivative P � (t). Evaluate P � (6). �

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