Hints on assignments in general and specific Assignment

How to approach a question: 1. Read through the question. 2. Draw a time line of the situation, where applicable. 3. Try and identify the type of problem asked. Identifying words, for example, the type of interest rate, or payment methods used, will help you to decide which formula to use. 4. Write down your formula. 5. Go back to question and identify the given values and substitute them into the formula. 6. Manipulate the formula if necessary. 7. Use your calculator to solve the unknown. Submitting your assignment: You must submit the assignments via myUnisa (). Assignments MAY NOT be submitted by fax or e-mail. Identifying words for Assignment 2: Chapter 3:  Compounded: Use S = P(1+jm/m) tm  Effective interest rate: jeff =100((1 + jm/m) m – 1)  Continues compounding: S = Pect  Conversions between interest rates:  Continues and compounded: c = mln(1+jm/m)  Effective and continues: j∞ = 100(ec –1)  Compounded to compounded: jn = n((1+jm/m)m÷n – 1)  Odd periods: Use simple interest for odd periods S = P(1 + rt) and compound interest S = P(1+jm/m) tm for the full period.  Fractional compounding: Odd period calculations using normal compound interest formula S = P(1+jm/m)tm but express the odd periods as a fraction of a year, as t must always be in units of years.  Rescheduling of payments towards loans: Equation of value concept – see notes on myUnisa.