J.J Reddick Essay Example for Free

J.J Reddick Essay acting a go means approximating it. A locomote number is often easier to expenditure, understand, and remember than the precise number. In MyFinanceLab most of our answers argon rounded ten-fold fraction numbers. A decimal number has three sepa calculate The whole number part, the decimal point and the decimal part. For example pic So, in order to round a decimal number we basically round the decimal part of it. These are the two basic steps for rounding error decimals to a coiffure look upon to the right of the decimal point whole step 1 come in the digit to the right of the given place value. Step 2 If this digit is 5 or greater, add 1 to the digit in the given place value and edit all digits to its right. If this digit is less than 5, delete all digits to the right of the given place value. For example stave 736. 2359 to the nearest hundredth. Solution Step 1 We locate the digit to the right of the hundredths place Step 2 Since the digit to the ri ght is 5, we add 1 to the digit in the hundredths place and delete all digits to the right of the hundredths place.Thus, 736. 2359 rounded to the nearest hundredth is 736. 24 Rounding in MyFinanceLab In MyFinanceLab we use in put together instructions to indicate the place value to which you must round your final answer(s). For example Lets say your final answer is 736. 2359. You must enter 736. 2 if the input instruction is Round to the nearest tenth. You must enter 736. 24 if the input instruction is Round to the nearest hundredth. Note Other typical input instruction in MyFinanceLab isRound to the nearest cent if the final answer is in currency units. You should enter 736. 236 if the input instruction is Round to three decimal places. Now, lets use a simple Time Value of Money (TVM) question you may encounter in MyFinanceLab. Problem Example Comparing Interest for Various compound Periods.If $1,000 is invested at 8% compounded annually, monthly, what is the amount after 5 year? (Round to the nearest cent. ) To solve this problem without using a financial computer or a spreadsheet, we need to use the compound interest, future value, manifestation pic where, i = r/m FV = future value at the end of n periods PV = fork over value r = annual rate m = number of compounding periods per year i = rate per compounding period n = Total number of compounding periods Solution a. Compounding annually means that there is one interest payment period per year. So, n = 5 and i = r = 0. 08. pic pic pic Therefore, rounded to the nearest cent, the final answer is $1,469. 33 b. Compounding monthly means that there are twelve interest payments per year. So, n = 12(5) = 60 and i = 0. 08/12 = pic pic pic Therefore, rounded to the nearest cent, the final answer is $1,489. 85 This TVM example helps us to understand a basic rounding principle in MyFinanceLab Do not round until the final answer. As you can see in part a. after solving the expression picwe leave i t unrounded and use as many digits as possible in its decimal part. The same happens in part b with the other exponential expression. Take another look at part b. because rounding i to a small number of decimal places, such as 0. 007 or 0. 0067, would have resulted in round-off errors.So, to avoid this, use as many decimal places as your calculator is capable of displaying. Tips If you want to calculate TVM problems, mathematical calculations are relatively straightforward. However, as you will see, TVM calculations are easier using a financial calculator or spreadsheet. But, no matter what method you use equation, financial calculators, or spreadsheets, you get the same answer because they all use the same formula and concept. These are some tips for solving TVM questions. Calculator Tips Set your calculator to display at least five decimal places or to floating decimal place (nine decimal places). Set your calculator to one payment per year.Adjust this setting if necessar y. Set your calculator to the end mode. Adjust this setting if necessary. Excel Tips Take advantage of the formula help that Excel offers. If you are lost, click on Help. Be careful about rounding variables. For example, suppose youre dealing with the interest rate 6. 99% compounded monthly. This means you will need to enter the interest rate per month, which is = 6. 99%/12, and since you are performing division in the cell, you need to put an = sign before the division is performed. Dont round the result of 0. 0699/12 to 0. 58 and enter 0. 58 as i. Instead, enter =6. 99%/12 or as a decimal =0. 0699/12 for i.