- This topic has 4 replies, 1 voice, and was last updated 1 year ago by
.
Viewing 5 posts - 1 through 5 (of 5 total)
- Posts
Looking at part a of this question and just struggling with the calculation of the increase in finance cost for option 2 (2,301,370 x 0·80 x 0·02) = 36,822. Could someone explain the 80% and 2% figures used?
And is the 9% in the question just a total red herring then?
The 2% is the extra interest (paying 9% on advances as against the overdraft rate of 7%) and the 80% is because it applies to 80% of the invoices.
- Topics: 53
- Replies: 46
- ☆☆
thanks!
Viewing 5 posts - 1 through 5 (of 5 total)
- You must be logged in to reply to this topic.