Jan 25 - Announcements 1. Visit the TAs during their office...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture Notes: January 26, 2011 Announcements 1. Visit the TAs during their office hours. The schedule is posted on the course website. 2. Test 1 is Monday, February 7 . a. A mock test will be posted on the class discussion board sometime Tuesday, February 1 st . Solutions will be posted sometime later. i. Take this test in “Exam-like” conditions. 3. The in class TA review will be on Thursday, February 3 rd . 4. The UF calling center is looking for student employees. Periodic vs. Effective Rates Dr. Banko started the class by showing an example of an effective rate problem. The exact problem is in the PowerPoints and can be found on slide 81. Anytime a problem involves periodic payments the EAR must be used. If the problem starts with an initial deposit and is compounded at a certain frequency other than annually, use the simple periodic rate. The second example Dr. Banko shows is on slide 83. It requires the use of the EAR. While EAR can be tricky to figure out, once you understand the formula it is not to difficult. The formula is : The hardest part to understand is that while the formula has two “Ns” they are actually not the same. The “n” in the denominator inside the parenthesis is the number of compounding
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Jan 25 - Announcements 1. Visit the TAs during their office...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online