I appreciate your patience this week with my missing class Monday and Wednesday. If you did not turn in your worksheet in class today, I will accept it at the start of class on Friday. If you would like to make corrections to a worksheet that you turned in, I will accept that on Friday as well.
Be sure that you watch the video from Monday’s class if you haven’t already.
Your midterm grades include all the homework submitted up to this point, 2 exams, participation, and 2 comments on the blog. If you have not commented on the blog yet, please make sure that you start doing so.
Below are some links to articles that describe the power of compound interest and why it's better than simple interest. Click on the links and comment with your thoughts.
I will be having additional office hours this week on Thursday from 12:15 pm - 2:00pm. If you have questions over the material covered on Monday or Wednesday or questions about your midterms, please come see me.
Friday's office hour at 9:00am will be moved to Agenstein 126.
I will be handing your exams back on Friday or you may pick them up in my office on Thursday.
Do we need to memorize the formulas for the next test or are we going to be getting a paper with them on it like the last test?
ReplyDelete-Jessica Nagel
You will need to be able to use the natural log (ln) as a tool to solve for the variable in the exponent. There are only the common log (log) and natural log (ln) buttons on your calculator. Look for the "ln" on your calculator.
ReplyDeleteI did some looking around online. I cant fiend a equation that has compound interest and inflation.(all I get are some blog post talking about the subject and graphs). It may not be what we are currently doing, but I do kind of want to know if there is a quick way to factor in the loss over. without having to do a second equation and subtracting the two.
ReplyDelete-Ian Fletcher, Section 4
Ian, this is a really interesting question. Let me do some research about this and get back to you.
Deletehttp://www.frbsf.org/education/publications/doctor-econ/2003/august/real-nominal-interest-rate/
DeleteI thought the 10 Things You Need to Know About Compound Interest were interesting because the longer you let your money sit in the bank, the more it will be worth in a couple of years. It doesn't matter how much money you invest, anyone can benefit from compound interest.
ReplyDelete-Sydney Ryals
I cannot find the correct answer for question 10 on the first interest webwork. If an amount is borrowed with a simple interest rate of 2%...a number with a decimal of .3333333333333 after it is paid back after how long. I've used the simple interest formula, and my answer is saying incorrect. -Taylor Gilbert, Section 3
ReplyDeleteIt's hard for me to determine your error without seeing what you did. You're right that you want to use the simple interest formula and solve for t. Make sure that you've converted the rate to decimal form correctly. Also, notice that the problem asks for time in months for your final answer. So, once you solve for t, you'll need to multiply by 12 to convert it from years to months.
DeleteI finally understand how to do problems that are yearly, quarterly and monthly, but when it comes to daily, I am having some issues. I understand the concept, but there's still something I'm doing wrong. What are the steps for daily?
ReplyDeleteIf interest compounds daily, then m=365, since there are 365 days in a year.
DeleteI don't quite understand your question. The difference is in the way that interest is applied. With simple interest, interest is just a flat percentage of your principal (I = Prt), but with compounded interest, interest is added in every compounding period, so that you can earn interest on your interest. You could use the simple interest formula for a compound interest problem, if you calculate the amount in the account at each compounding period (see the example in the video where we do this). But that's a lot of time consuming work, so we have a formula instead. When you save money in a bank account, the bank pays you interest for
ReplyDelete(in effect) lending them your money. When you borrow money, you pay your lender interest for giving you the money.
The reviews have been helpful, and they made me realize how much I forgot about z scores, standard deviations and the majority of everything in that topic. This is one thing I'm going to continue hitting hard before the final, as well as, the more advanced combination and permutation word problems. Thank you for supplying us with the tools necessary to succeed.
ReplyDelete