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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › apportionment
Dezda Co can borrow at base rate plus 1% in Malaysia and base rate plus 1.5% in South Africa.
Base rate in South africa is 8.30% and in Malaysia is 6.25% (these are annual figures)
I want the 6 month figure so should I first apportion the original base rate and annual figures and then add on the excess on top of base rate or should I first add on the excess to the base rate and then apportion that total figure by 0.5?
You should add the 1% and 1.5% to the relevant annual rates, and then you should divide by 2 to get six month rates.
