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from my aat studies,
the annual interest rate of the discount= d/100-d *365/(N-D) *100%where
d=the discount percentage
N=the normal days without discount
D=the days with discountthis is effectively the method you use but the answers are a little different…
so that ex1
the annual interest rate of the discount= 4/(100-4)*365/(90-30)*100=25.34%
= 4/(100-4)*12/(3-1)*100=25%
versus your
versus your 27.75% //12months
which is equivalent to
[4/(100-4) +1]^[365/(90-30)]=1+R
R=28.19% //365dayscan i run with the first formula?
for the second example in the same lecture, i would get
1/99*365/20*100%=18.43%
versus your 20.13%thank you
For Paper F9 the examiner will expect you to do it the way that I do it in the lecture (which is more accurate).
I assume that you are watching the free lectures and not just using the lecture notes on their own. The lecture notes are only notes and it is in the lectures that I explain and expand on them. If you are not watching the lectures for any reason then you need to study using a Study Text from one of the ACCA approved publishers.
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