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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › ACCA September/December 2020 question 1
Please, help me to know the use of 5% and 3% which calculated value in period 1 to 4 with calculation of in redemption amount
As always when calculating the IRR (as in Papers MA and FM also), you can use any two ‘guesses’. Different guesses give slightly different answers (because as explained in my free lectures the relationship is not linear), but that is irrelevant for the marking.