Bold co

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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February 27, 2019 at 4:56 pm #506740
hayley
Member
- Topics: 5
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Hi,
I am looking at the question bold Co. Part of the question says that the interest on the advance is 2% higher than the 7% they pay on the overdraft.
In the answer they have based the interest on 2%, but I read it that it should be 9% as they currently paying 7%. Can you please explain why I am wrong in thinking its 9!

Thanks
February 28, 2019 at 9:30 am #506804
John Moffat
Keymaster
- Topics: 57
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The interest is indeed 9%.

So you can either show the cost as 9% and the overdraft saving as 7%. Or you can just show the net cost as 2%. You end up with the same result 🙂
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