We describe a rapidly converging algorithm for solving the Schrodinger equa
tion with local potentials in real space. The algorithm is based on solving
the Schrodinger equation in imaginary time by factorizing the evolution op
erator e(-epsilonH) to fourth order with purely positive coefficients. The
wave functions \ psi (j)> and the associated energies extracted from the no
rmalization factor e(j)(-epsilonE) converge as O(epsilon (4)). The energies
computed directly from the expectation value, < psi (j)\H \ psi (j)>, conv
erge as O(epsilon (8)). When compared to the existing second-order split op
erator method, our algorithm is at least a factor of 100 more efficient. We
examine and compare four distinct fourth-order factorizations for solving
the sech(2)(ax) potential in one dimension and conclude that all four algor
ithms converge well at large time steps, but one is more efficient. We also
solve the Schrodinger equation in three dimensions for the lowest four eig
enstates of the spherical analog of the same potential. We conclude that th
e algorithm is equally efficient in solving for the low-lying bound-state s
pectrum in three dimensions. In the case of a spherical jellium cluster wit
h 20 electrons, our fourth-order algorithm allows the use of very large tim
e steps, thus greatly speeding up the rate of convergence. This rapid conve
rgence makes our scheme particularly useful for solving the Kohn-Sham equat
ion of density-functional theory and the Gross-Pitaevskii equation for dilu
te Bose-Einstein condensates in arbitrary geometries. (C) 2001 American Ins
titute of Physics.