Dear Sir,
In the solution in the borrow column are those amounts cumulative? and sorry to say but i didn’t understand how 20,90,30 and 90 came in Invest column. Could you please make it clear.
Thanks in Advance.
Ask the Tutor ACCA FR
Borrowing cost example
The amount in the borrowed column is cumulative (couldn't you work that out?!!!)
The amount in the invest column is the amount of surplus funds. If I borrow 20 and I immediately spend 12 then I have surplus funds of 8 to invest.
Can you work it out from there on or do you want a complete explanation?
Yes, I got those are cumulative. But yes i will prefer a complete explanation, May be i have the confusion with the terminals, withdraw, spent, invested etc.
Borrowed 100, spent 50 invested 50
Spent 30 so investment falls to 20
Borrowed 120, spent 50 invested 70
So investment rises to 90
Spent 60 so investment falls to 30
Borrowed 80 spent 20 invested 60
So investment rises to 90
Can you finish it now?
Yes, Thank You Sir.. :)
Good - post again when you come across anything else that you don't understand
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