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Victoria says

Am I being stupid, or is 2,000 squared not 4,000,000?

So should it not be 3(3/4 * 5 * 4,000,000)?!

Help, I’m lost!

johnmoffat says

2000 squared is indeed 4,000,000

However, what about dividing by the interest rate, and then taking the third root?

If you look at the Course Notes, you will find the formula at the front of them, and the answer to the example somewhere at the back.

iluvgorgeous says

using scientificic calculator why multiply by 11 as shown a member?

johnmoffat says

I am not sure what you are trying to say here

cecel says

Finally understood totally that miller orr calculation! Never seemed to get that spread calculation correct until now! Thanks John!!!

saulat says

i am using casio fx-82MS calculator. the amount in the bracket 0.75 * 5 *4000/0.00014 it gives me 107,142,857. before taking cube root. like 0.75 * 5 *4000 equals to 15000 / 0.00014 equals to 107,142,857 before taking cube . and after cube it gives 10350 ? i m really confused ? how to use it on a calculator ?

wellaz26 says

variance = (standard deviation) squared = 2000 squared = 4m and not 4000.

the figure in the bracket should be 0.75 * 5 * 4 000 000/0.00014 = 1.0714 to the power 11 the cube root gives you 4749.57 and multiply by 3 = 14 248.71 rounded to 14 250

Mahoysam says

Thanks for making the percentage bit clear! At work, I had a percentage which was 0.01%, I thought this meant 1%!! That actually confused me and I was still confused, until now when you made it clear that there is a difference when you add the percentage sign to the decimal.