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

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March 22, 2012 at 1:12 pm #51971
AmbitiousMe
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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
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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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