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1/(1+r)n dismantling/interest calculation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › 1/(1+r)n dismantling/interest calculation

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 25, 2019 at 9:47 pm #517345
    zachmorris
    Participant
    • Topics: 4
    • Replies: 2
    • ☆

    I’ve come across this illustration in my Kaplan study text.

    4m x 1/1.05 20* = 1,507,558.

    I haven’t got the slightest clue how to key that formula into a calculator.

    Can you break it down for me?

    May 28, 2019 at 2:08 pm #517658
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7207
    • ☆☆☆☆☆

    You are best to do the 1.05 to the power of 20, using the ^ button on your calculator of x to the power y.

    Do 1 divided by your answer and then multiply this answer by 4m.

    Hope that clears it up.

    Thanks

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