ACCA Sep Dec 2020 sample paper (Fitzharris Co)

Hi sir,

In the above question in the interest rate collar if the interest rate decreases to 3.3% they have calculated in the answer scheme using the percentages and arrived at the figure of 4.173%

However they’ve mentioned full credit will be given to answers using dollar value and got the resultant effective rate but haven’t given the solution.

I did the working using the dollar value and I got a rate of 4.92% (considering 576 contracts which is also given full credit)

So what I would like to know is why is there this much of a variance between the two and I’ve based my evaluation using the figures I’ve arrived at.

So in this case 4.35% was the comparative other figure so based on my calculation 4.35% would’ve been better off however based on the answer 4.173% is clearly better

My question is if I had done the calculations correctly and my evaluation is based on my figures do I get the Mark’s for my commentary and discussion?

Also if you have done the answer using dollar figures and 576 contracts what answer would you have gotten, if you had done it that way just to check whether my calculations are correct.

It’s a pretty long query, I’m sorry about that. Also want to thank you for your commitment and dedication towards helping all the students. May god bless you all

Thanks in advance 🙂