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A transformer transfers AC power between circuits via mutual induction. Ideal transformer: / = (turns ratio), = (power conservation), so / = . Step-up ( > ) increases voltage and proportionally decreases current. Step-down does the opposite. Impedance transformation: = ^2 * — used for impedance matching in audio and RF circuits. Real transformer losses: (1) Copper losses ( in windings) — minimized by thick, low-resistance wire. (2) Eddy current losses (induced currents in core) — minimized by laminated core (thin insulated sheets). (3) Hysteresis losses — minimized by soft iron core (narrow hysteresis loop). (4) Flux leakage — minimized by winding coils over each other. Efficiency = output power/input power x 100%, typically 90-99%. Transformers only work with AC — DC produces constant flux and zero induced EMF. Long-distance power transmission uses step-up to reduce current and minimize line losses.