Sample Problems for Midterm #3
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First off, test #3 will be held on Monday the 10th.  The homework for
chapter 5 will be due then also.  I will include an equation sheet on
the test, but beware, if you don't understand these equations you
will likely be unable to solve the problems.

The sample problems are listed below.  I will design the test directly
based on these problems.  Hopefully between wednesday and friday we will
be able to solve a significant portion of these in class.

Chapter 4: Exponentials and Logarithms
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1. Be able to combine logarithms:
Section 4.5: #21,26

2.  Be able to separate logarithms:
Section 4.5: #27,31

3.  Given basic equations containing logarithms, be able to solve for x:
Section 4.5: #45,46,50

4.  Given basic equations involving exponents, be able to solve for x:
Section 4.5: #53,55

5.  Exponential Growth and Decay
Section 4.5: #62, 64


Chapter 5:  Mathematics of Finance
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6.  Be able to find effective rates and use them for comparision:
Section 5.5: #2,3
[These problems mention 'the nominal rate.'  The nominal rate is the 
usual percentage rate they give you in problems, the APR.  
The effective rate is the percentage you actually get, which is higher,
because you earn interest on interest.]

7.  Understand the idea of present value:  5.2: #14

8.  The interest equation S = P(1+r)^n has four variables.  Given three of
them, you should be able to solve for the last, see the following problems:
Section 5.1: #18,20
Section 5.2: #11

9.  Understand the idea of an annuity (multiple payments/deposits).
On the test, I will only ask questions about ordinary annuities.
Please note that it's extremely easy to solve for R, the required
payment, in the present and future value equations.
Be able to find future and present values:
Section 5.3: #14,22

10. Finally, Section 5.3: 28,29