# Quiz 1 Practice

Here is an exemplary quiz. The material for quiz 1 covers everything up to and including (two sided) limits. Later this week I will upload a solution for this quiz.

Pleas find some quit time (about 15-20 minutes) and try to solve it (preferably without looking at it before that).

A short explanation about the structure:

• There are two “Very short answer questions” – For these you are supposed to supply only the final answer.
• Ther are two “Short answer questions” – Here you are supposed to supply a final answer with a short explanation of how you got it.
• There is one “Long answer question” – This question is multiparted and you should supply a final answer together with an explanation of how you got it.

In fact, you are not supposed to use calculators in the quiz.

Exemplary Quiz

# The different kinds of interest rates and plans

Hi,

After talking with a student I figured that the quick overview I had on Monday might caused a little confusion regarding effective interest, effective interest rate and simple interest (it even confused me for a couple of minutes). So inorder to avoid further confusion, here is a summary of what you should know, hopefully it will help.

Kinds of Interest Rates

There are 3 kinds of interest rates:

• j – effective interest rate
• i – nominal interest rate
• r – real interest rate

Kinds of Interest Programs

There are 4 kinds of interest programs:

• Simple interest: FV=PV*(1+jt)
• Effective interest: FV=PV*(1+j)^t
• Compounded Interest: FV=PV*(1+i/n)^nt
• Continuously Compounded Interest: FV=PV*e^rt

We noted that effective interest is the same as compounded interest when it is compounded yearly, however (and here begins the confusing part) it is computed using the effective interest rate. Now, the simple interest plan also uses the effective interest rate (which is the second cause for confusion) but it is compounded once in the whole loan period and not yearly.

# A few announcements

First of all, I am happy to say that we have a room for our office hours. They will be held at MATX 1118. If you are unsure where it’s located you can look here:

I remind you that office hours will be held on:

Tuesday 12:30-14:00

Thursday 13:00-14:30

On another note, it was brought to my attention that the notes from Friday contain an error in the solution of exercise a in page 5. I have 3 things I want to say about this:

1. This error did not happen in class so your own lecture notes are OK.
2. I will upload notes for yesterday class with a corrected solution.
3. This serves as a lesson to you that you should always be suspicious toward what you read or hear. The fact that I am your instructor is not an insurance policy from mistakes so always think if what I say or write makes sense and even more so for strangers over the internet (remember that I told you that using Google is a good idea but to do it carefully?).

As for the workshops, I copy-past the information from the common website:

### Drop-in Tutorials:

There will be optional tutorials twice a week facilitated by 1 GTA and 1 UTA.

Feel to drop by with your Calculus problems or just come hang out and practice. The default is to follow the same topics as the 184 workshops, but the TA’s are fantastic and you can ask them anything!