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Baumol model followup

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Baumol model followup

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 24, 2018 at 7:33 pm #443699
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    So sir are the below 2 formulae correct and can it be applied in all Baumol model questions?

    1) Interest lost on investment which we calculated by
    Interest rate on investment (%) multiply by (Investment sold at start of year + cumulative investment sold at end of year) / 2

    2) Interest earned on bank balance which is calculated by
    (interest earned on bank balance (%) multiply by investment sold each time) /2

    March 25, 2018 at 9:14 am #443714
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    Correct

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Baumol model followup’ is closed to new replies.

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