Teaching Business Mathematics II without formulas. Oded Tal School of Business Conestoga College. Outline. Rationale and goal Challenges and solutions Solving compound interest questions Solving for effective and equivalent interest rates Solving annuities Solving perpetuities
School of Business
Can it be done using the financial calculator?
N vs. i2
N vs. (P/Y)/j
Final payment=(1+i2)* previous balance.
Average improvement: MOM- 19.1%, Accounting- 7.6%.
Stronger students tend to initially prefer the formula method, until one of the following “break points”: