So $10^3 = 10\times 10\times 10 = 1000$, this is really easy to understand.
But what about: $\,10^{3.5}\,?\,$ My logic would suggest this was
$10\times 10 \times 10\times 5 = 5000,\;$ but the calculator says it's
3162.27...
Can someone illustrate how the calculator calculates the power of when the number is with decimals?
Please keep in mind that I'm a newbie to mathematics!
With $10^{0.5}$ you have to do a "half multiplication", not a multiplication by half. What this "half multiplication" is doesn't follow from any universal law, but only by extending in a coherent way the rules valid for integer exponents.
Since, for integer $m$ and $n$ you have $$ a^{m+n}=a^m\cdot a^n $$ you can derive also that $$ (a^m)^n=a^{mn} $$ (just repeat the multiplications and count the factors). So, what $a^{3.5}$ should mean? Well, a possible choice comes from doing $$ a^7=a^{3.5\cdot 2}\overset{*}{=}(a^{3.5})^2 $$ where the equals sign marked with $*$ is where we apply an extension to the rule above.
Thus one can try defining $$ a^{3.5}=\sqrt{a^7}. $$
This is how actually exponentiation to a rational is defined: $$ a^{\frac{p}{q}}=\sqrt[q]{a^p} $$ and it can be shown that the rules
$$ a^{x+y}=a^x\cdot a^y,\qquad (a^x)^y=a^{xy} $$ continue to hold for all rational numbers $x$ and $y$ (and positive $a$).