Hi
In part (C) why are we not taking into account the 90000 we pay the bank when calculating the savings. Isn't that an expense that is reducing our savings?
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Arnbrook Plc June 06
7y ago#1What $90,000?
The saving is the difference between the interest that would have been paid, and the interest that ends up being paid.
Ok, thankyou!
though i believe that the 90000 fee that we pay the bank should be deducted from the yearly saving that we make. But the examiner has not considered that.
7y ago#4The questions asks about the savings.
The examiners answer does refer to the annual fee immediately before the PV calculation.
I still do not know where you are getting 90,000 from. The fee is 120,000 per year.
ok. this is the kaplan kit, i guess they have once again changed the figures.
thanks for your answer!
7y ago#6You are welcome :-)
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