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When to know when to use linear interpretion?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › When to know when to use linear interpretion?

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
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  • May 28, 2012 at 12:06 pm #52934
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 0
    • ☆

    Hi,

    I’ve been going through past papers when preparing to resit F9, and I’m a little unsure of the signs of when linear interpretation is needed, could anyone help?

    Example Q1 of Dec 2009 paper

    Thanks in advance

    May 30, 2012 at 6:45 pm #98516
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54693
    • ☆☆☆☆☆

    Its actually linear interpolation.

    I do not know what you mean about Q1 of December 2009 – there is no linear interpolation in that question.

    Where it is always necessary if when you are asked to calculate the IRR. Then we make two guesses and approximate from them assuming that the relationship is linear.

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