MA170 Lecture Notes - Lecture 5: Linear Interpolation, Interpolation, Local-Loop Unbundling
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Read the appedix in the back of the text book to understand the particulars of linear interpolation. = (1 + i)n (cid:19)1/n (cid:19)1/n 1 (cid:18) s. P: if s, p, and i = jm m are known, then n can be: (a) determined using the exact (or theoretical) method (which uses compound interest on remaining fractional part of the last period). S = p (1 + i)n s. P (cid:19) (cid:18) s (cid:19) (cid:18) s log(cid:0) s. = n log(1 + i) using properties of logarithms log(1 + i) Note: always express nal answer in years, months, days. (b) determined using the practical (or approximate) method (which uses simple interest on remaining frac- tional part of the last period. ) Step 1: use result n for exact method to nd (cid:98)n(cid:99) (largest integer less than or equal to n). (cid:16) (cid:17) Step 2: determine the fractional part of last period using k =