## Linear Approximation

Here I will attempt to use linear approximation to estimate the value of

The first thing you need to do when performing a linear approximation is set up an equation with known numbers as variables:

here we have turned 1.07 into “x”.

Now take the derivative of either side; when x = 1 and dx = 0.07

ln(1.07) = f(1.07) because our f(x) function was equal to ln(x), so we know in this case, that x = 1.07, after all, it was given in the problem.