Friday, February 22, 2019
What is trollinging? tumiding a number means approximating it. A go number is often easier to uptake, derive, and remember than the precise number. In MyFinanceLab most of our makes argon move tenfold numbers. A decimal number has three man The whole number element, the decimal point and the decimal part. For example pic So, in order to lag a decimal number we basically fatten out the decimal part of it. These be the two basic steps for locomote decimals to a place value to the chasten of the decimal point tone of voice 1 Locate 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 delete all digits to its right. If this digit is slight than 5, delete all digits to the right of the given place value. For example Round 736. 2359 to the nigh hundredth. Solution Step 1 We locate the digit to the right of the hundredths place Step 2 Since the digit to the right is 5, we add 1 to the digit i n the hundredths place and delete all digits to the right of the hundredths place.Thus, 736. 2359 move to the hot hundredth is 736. 24 Rounding in MyFinanceLab In MyFinanceLab we enjoyment infix instructions to indicate the place value to which you must round your lowest arrange(s). For example Lets say your final answer is 736. 2359. You must put in 736. 2 if the input instruction is Round to the nearby tenth. You must enter 736. 24 if the input instruction is Round to the ne arest 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 habit a simple Time Value of Money (TVM) question you may encounter in MyFinanceLab. Problem Example Comparing Interest for various(a) deepen Periods.If $1,000 is invested at 8% compounded annually, monthly, what is the amount after 5 year? (Round to the nea rest cent. ) To solve this problem without using a monetary calculator or a spreadsheet, we train to use the compound please, in store(predicate) value, formula pic where, i = r/m FV = future value at the destruction of n flowings PV = present value r = annual drift m = number of compounding periods per year i = appreciate 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 boosters us to understand a basic rounding principle in MyFinanceLab Do not round until the final answer. As you can see in part a. after figure out the expressi on picwe leave it unrounded and use as many an(prenominal) 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 wishing 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 librate 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 doctor your calculator to display at least pentad decimal places or to floating decimal place (nine decimal places). Set your calculator to one pa yment per year.Adjust this setting if necessary. 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 paying attention 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.