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Hello,
Help, this is my weakest topic.
1. How was the cost of borrowing calculated; 4.7% and 3.7?
2. How was the effective interest rate calculated?
Many thanks
Maureen
Sir i have same question, how 4.7 and 3.7 is calculated?
It should be 4.3%(3.8+0.5) if rate gone up, and 3.3% if rate gone down.
Please explain.becouse borrow at libor plus 40 basic
so if libor libor incres buy .5 to 4.3
borrow at 4.3 plus .4 =4.7
if decrease to 3.3
borrow at 3.3 +.4 = 3.abdelbag: Please don’t answer questions in this forum – it is Ask the Tutor, and you are not the tutor (but please do help people in the other P4 forum 🙂 )
Maureen and Hisham: abdelbagi’s answer is correct (except obviously he accidentally put 3. instead of 3.7 as the last figure)
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