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Hello Sir,
I was looking question quoted above, this is not covered in the syllabus so i didnt understand the use of compound table.
If you dont have access to the kit, company a purchased a zero coupon for $441,014 to mature in 3 years time for 600,000.
There is compound table provided.
I am confused as to why we use the compound table fro start, as in our tuition video all i know is amortised cost.
regards
Looking at the question now – very strange – it looks like a financial management question.
I think in the exam that you will be given the IRR, 8%. I cannot recall this examiner asking students to work it from. tables.
Bear in mind that the preparation questions at the start of the BPP kit are not exam standard.
So I would move on to question 1B!
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