ACCA F9 , September 2016 Question 32 , selling price with inflation calculation

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August 28, 2019 at 12:32 am #543399
tnvrstar
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Selling price in year 1 is 15, year 2 is 18 , year 3 is 22 and year 4 is also 22.
Inflation is 4% per year.
So, selling price for year 1 is = 15*1.04 = 15.6
But selling price for year 2 is 19.47
kindly help me how this 19.47 is calculated
ok it seems finally my brain clicked , it should be 18*1.04^2
I was calculating 18*1.08
August 28, 2019 at 12:03 pm #543517
John Moffat
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That is correct, but in future please ask questions about Paper FM (it is not called F9 any more) in the Paper FM Ask the Tutor Forum and not in this general forum.
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