Concept Questions (Section 1.2)
1. You must retain at least one more figure than you require in the answer. To achieve four-
figure accuracy in the answer, you must retain a minimum of five figures in the values
used in the calculations. B)
2. We want six-figure accuracy in the answer. Therefore, values used in the calculations
must be accurate to at least seven figures. B)
3. We want seven-figure accuracy in the answer. Therefore, values used in the calculations
must retain at least eight figures. C)
4. To be accurate to the nearest 0.01%, an interest rate greater than 10% must have four-
figure accuracy. Therefore, five figures must be retained in numbers used in the
calculations. C)
, Exercise 1.2
a. 1
= 0.10 = 10%
10
b. 2 = 0.40 = 40%
5
c. 1 = 0.25 = 25%
4
d. 3 = 0.75 = 75%
4
1
e. 1 = 1.50 = 150%
2
1
f. 2 = 2.3333 = 233.33%
3
g. 10 = 2.00 = 200%
5
h. 52 = 5.6667 = 566.67%
3
i. 0.25 x 80 = 20
j. 0.20 x 120 = 24
k. Money in Savings = 0.20 x $1000 = $200
Money in TFSA = 0.50 x $200 = $100
1. 7
8
= 0.87500 = 87.500%
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestsBanks. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
