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September 26, 2022 at 12:08 pm
from the figure 1.2682, how did you derive that the interest per for the whole year was $26.82?
John Moffat says
September 26, 2022 at 4:15 pm
Multiplying something by 1.2682 is the same as adding on 0.2682 of the amount, and multiplying by 0.2682 is the same as multiplying by 26.82%.
November 4, 2020 at 6:26 pm
Sir, thankyou very much for starting with the logics behind each thing ! Thats the best thing about you !
Sir, in our institute, we are thought to use the following formula to convert a nominal interest rate to an effective interest rate:
r= (1+i/n)^n – 1
where r = effective interest rate
i= nominal interest rate
n = number of periods.
Using this other formula I am getting a different answer to the one you are getting to calculate for Example no.4
And I dont even understand the logic of the above formula.
November 5, 2020 at 8:44 am
It is the same formula. The question gives the interest as 2% per month, and so the annual rate is (1.02^12) – 1
Had the question said that the nominal interest was 24% per year, then you would have divided 24% by 12 to get the monthly rate of 2%.
November 5, 2020 at 4:38 pm
Thankyou for the logic !
November 5, 2020 at 4:47 pm
You are welcome 🙂
April 16, 2020 at 3:49 pm
Hi John, I just wanted to say thank you so much for all your hard work. I’m back studying after finishing college over 16 years ago and your lectures are so on point they bring me right back to my college days. I thought I would struggle to remember but you explain so well in a number of lectures what took a year to learn in college. Thank you to you and your team!
December 29, 2019 at 6:31 am
Very informative and easy to follow lecture. Thank you
December 29, 2019 at 11:19 am
Thank you for your comment 🙂
September 24, 2019 at 10:03 am
I didnt understand how we get 1.10 in compound interest. Is it the calculation of interests of the 1st two years?
September 24, 2019 at 3:46 pm
If you are referring to example 2 in the lecture notes, then the question states that the rate of interest is 10% per year. Multiplying by 1.10 is the same as adding on 10%.
(I do assume that you downloaded the free lecture notes before watching the lecture?)
September 25, 2019 at 7:31 am
Yes sir. Thank you very much!
September 25, 2019 at 1:47 pm
August 25, 2019 at 10:27 am
Hi I noticed that from Chapter 22 to 30 the lecture notes and the lecture video links are being mixed up.
On the lecture note Chapter 22 is Measure of Average and Dispension, however the lecture video for Chapter 22 is about Interest.
Hope opentuition can make the amendment. Thanks
August 25, 2019 at 4:19 pm
It is because Chapters 22 and 23 are new chapters on topics that have been added to the syllabus for exams from September 2019 onwards. If you are taking the exams this month then ignore these chapters.
Lectures on these two chapters will be uploaded later this week.
May 2, 2019 at 2:05 pm
Thank you sir, That’s a pretty interesting and useful lesson!!!!!!!!!!!
I hope one day that my classmates can watch lectures on Opentuition without using VPN!!!!!!!!!!!!!!
May 2, 2019 at 3:04 pm
December 11, 2018 at 2:48 am
Where does the 26.82 come from? I am confused. It’s clear till the total amount after one year which is $126.82, but after that, I did not understand the calculation for APR
December 16, 2018 at 5:39 am
He said we gotta deduct the 1.2682 (the monthly interest) with 1 (from the formula i think) which will be 0.2682 multiply by 100 then 26.82% for the annual rate
December 16, 2018 at 5:49 am
As 1+R(annual rate) equals to (1+r)12 months which then 1+R=1.2682, we can just deduct 1-1.2682 in order to calculate the annual rate that symbolized as R = 0.2682 then multiply by 100 to find out the percentage 26.82%
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