12b.3

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
September 1, 2021 at 11:08 pm #633885

johnbriane
Member

Dear sir

In this question why did we use effective annual interest rate

Why couldn’t we just
Apply the compounding interest formula and solve this question

Why did we
Take EAR into the picture

Thank you

September 2, 2021 at 7:42 am #633920

John Moffat
Keymaster

You could do it that way and arrive at the same answer. How you get to the answer does not matter in the exam (because nobody will look at your workings 🙂 )
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.