[Sandy]

Yes sir, got it! Many thanks!! 🙂

[Sandy]

Also sir, even in Strayer (6/02), the issue costs have not been calculated on the gross amt of finance, and no such note (as in the case of trosoft) has been included. So will I be given full marks if I compute the issue costs on the gross amount of the loan?

Many thanks!! 😀

[Sandy]

Oh oops. I never knew that the note meant that the issue costs need not be grossed up! Thanks sir.

Oh alright. So basically, p4 is full of assumptions. So as long as I state what my assumptions are (unless we’ve clearly been told what to do in the question), I will be given full credit, right sir? 🙂

[Sandy]

Yes sir, I got that. But shouldn’t wr be doing it this way? 142 x (1 +.085 + 0.0025)/(2 +.022 – 0.003) x 1/3? Why are we diving (0.085 +.0025) by 3 and adding it to 1, and similarly dividing (0.033-0.003) by 3 and adding ut to one?

[Sandy]

Alright sir, will do 🙂

[Author]

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