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Chapter 7, example 5 Solution

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Chapter 7, example 5 Solution

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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    Posts
  • April 15, 2017 at 8:15 am #381386
    akanim
    Member
    • Topics: 5
    • Replies: 7
    • ☆

    Good day Sir

    Why are we using 13 years on the solution If the first payment is made after 4 years and thereafter each year for a total of 10 years, why are we not using 14 years on the solution (4 + 10)?

    Kind regards

    Akani

    April 15, 2017 at 10:10 am #381400
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    Try counting the years 🙂

    If there were 2 years then they would be at time 4 and time 5.
    If there were 3 years then they would be at times 4, 5 and 6.

    Keep going, and you will find the 10th payment is at time 13.

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