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Sir,I am unable to understand how to apply the deposit and borrowing interest rates to the amount. In some questions we divide the interest and in some we multiply the interest. If I could know when to divide and when to multiply the interest rates it would be really helpful. Thankyou.
If we are calculating the amount we need to deposit then we need to divide by 1 + the interest rate. If we are calculating how much we will end up owing on borrowings then we need to multiply by 1 + the interest rate.
I do suggest that you watch my free lectures on this, because I explain in detail (with examples) what we do, and why – which is just as important for the exam, since only 50% of the exam involves calculations). I cannot type out all of my lectures here 🙂
(The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.)
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