Chapter 12

Rules of Exponents & Large-Number Arithmetic

Powers of 10, scientific notation, compound growth, unit scaling

12.1 Powers of 10

10¹ = 10          10⁶ = 1 000 000  (one million)
10² = 100         10⁹ = 1 000 000 000  (one billion)
10³ = 1 000       10¹² = one trillion

12.2 The seven core rules

Rule 1  Product:          aᵐ × aⁿ = aᵐ⁺ⁿ
Rule 2  Quotient:         aᵐ ÷ aⁿ = aᵐ⁻ⁿ
Rule 3  Power of a power: (aᵐ)ⁿ   = aᵐˣⁿ
Rule 4  Power of product: (ab)ⁿ   = aⁿ × bⁿ
Rule 5  Zero exponent:    a⁰      = 1
Rule 6  Negative exp:     a⁻ⁿ     = 1 ÷ aⁿ
Rule 7  Fractional exp:   a¹/ⁿ    = nth root of a

12.3 Scientific notation

number = M × 10ⁿ   where  1 ≤ M < 10

Examples: 43 500 000 = 4.35 × 10⁷. 0.0072 = 7.2 × 10⁻³. 630 000 000 000 = 6.3 × 10¹¹.


12.4 Multiplying and dividing in scientific notation

Multiply: (M1 × 10ᵃ) × (M2 × 10ᵇ) = (M1 × M2) × 10ᵃ⁺ᵇ
Divide:   (M1 × 10ᵃ) ÷ (M2 × 10ᵇ) = (M1 ÷ M2) × 10ᵃ⁻ᵇ

To ADD or SUBTRACT: align exponents first. 5.1 × 10⁸ + 7.3 × 10⁷ = 5.1 × 10⁸ + 0.73 × 10⁸ = 5.83 × 10⁸.


12.5 Unit scaling

1 km  = 10³ m   →   1 km²  = 10⁶ m²
1 tonne = 10³ kg     1 megatonne = 10⁹ kg

12.6 Compound growth and the Rule of 70

Value after n years = Start × (1 + r/100)ⁿ

Example: €5 000 at 4%/year for 10 years = €7 401. Rule of 70: doubling time ≈ 70 ÷ r years. At 5%, doubles in ~14 years.


12.7 Critical errors to avoid

💡 aᵐ + aⁿ ≠ aᵐ⁺ⁿ. The product rule applies only to multiplication: 3² + 3³ = 9 + 27 = 36, not 3⁵ = 243.
💡 (a + b)ⁿ ≠ aⁿ + bⁿ. Example: (5+2)² = 49, not 25+4 = 29.
💡 1 million = 10⁶. 1 billion = 10⁹. 1 trillion = 10¹². Confusing million and billion is a 1 000× error — very common in GDP questions.