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Effective % cost p.a. of the discount Ch 5 Exp 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Effective % cost p.a. of the discount Ch 5 Exp 1

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
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  • March 22, 2012 at 1:12 pm #51971
    AmbitiousMe
    Member
    • Topics: 7
    • Replies: 7
    • ☆

    The formula given in BPP text book is different to what you have suggested in your lecture. Formula in BPP text book is

    1-[100/(100-d)]^(365/t).

    Which one should we use in exam?

    March 23, 2012 at 5:49 pm #95762
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54795
    • ☆☆☆☆☆

    You can use either – the answers will be different but they are both acceptable.

    (It has only appeared in the exam twice, and in both cases the examiners answers did it the same way as the note – the BPP formula is more accurate but the simple approach is acceptable.)

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