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Hi Sir
bit confuse with 3.5 % 5 year interest for reedeemable debt
how to calculate with 3.5% discount rate annuity.
I requested because annuity table not showing 3.5 %. It is only showing in whole number
Regards
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Correct me if I’m wrong i think its
1/1.035^5 =0.841973166858524
1-0.841973166858524= 0.158026833141476
Then 0.158026833141476/.035(rate) = 4.51505237547074brain33 – if you want me to answer a question then you should ask in the Ask the Tutor Forum. This forum is for students to help each other!
Verty is correct. It is unusual in the exam to be asked interest rates that are not in the tables, but if you are asked then you need to calculate the discount factor yourself using the formula that is given at the top of the tables.
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