A few common mistakes that I suggest you reflect upon before the midterm next week:
- In the problem with compounded interest, many of you were confused regarding the values of n and t. I remind you that n is the number of compounds per year (that is, for a quarterly compund n=4, for monthly compund n=12 and for a daily one n=365) and t is the span of the loan measured in years (so half a year will give t=1/2, two years will give t=2 and one month is t=1/12).
- Many of you had trouble with finding the slope of the demand function see that you know how to write the equations and solve them; if not: come to office hours!
- Many managed to write the correct demand formula in terms of q=ap+b but failed to invert the equation to be and write it as p=cq+d. Once again, if you are unsure how to do this: come to office hours!