Originally Posted by Epsilon Theta
Are students supposed to use linear interpolation to calculate an unknown interest rate when the problem is not simple enough to use the financial calculator? I use the Excel Solver function in "real life". Linear interpolation can be time consuming.
I suppose, if you really felt like it, and if
a problem like that happened to appear on the exam, you could try to memorize the Newton-Rahpson formulas. I doubt they'll appear, though. In the past, the problems were designed so that the most complicated formula you'd need to remember to figure out i
is the quadratic formula. Then again, it is the first FM, so...