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Example compound instrument ch.28 f7 notes

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Example compound instrument ch.28 f7 notes

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
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  • February 25, 2017 at 7:36 pm #374225
    aridi
    Member
    • Topics: 3
    • Replies: 7
    • ☆

    Hello,
    Could you please explain how you find out the column with the Discount factor?
    9346, 8734 and 8163?

    Thank you

    February 25, 2017 at 9:02 pm #374231
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23334
    • ☆☆☆☆☆

    Put in your calculator ‘1’

    Then divide that by 1.07 ie, by 1 + the discount factor expressed as a percentage

    There you have .9346

    Now divide that by 1.07 and you arrive at .8734

    And again and you’ll find .8163

    Now, what you really must consider is watching John’s F2 videos and remind yourself about discounting!

    OK?

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