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F9 June 2015 Section B Question Q1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › F9 June 2015 Section B Question Q1

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 24, 2016 at 2:37 pm #351187
    AvatarDreamerSK
    Participant
    • Topics: 24
    • Replies: 89
    • ☆☆

    Is it okay to use 720 000 euro(750-(750*4$) instead of 721154 euros?

    November 24, 2016 at 3:29 pm #351207
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    No it is not OK !!!

    You should do it the way I do in my free lectures on this, which is the correct way and the way that the examiner expects.

    You would not lose all of the marks for this part of the question, but you would certainly lose many of them because it is wrong.

    Have you watched the free lectures? Because in the lectures I do explain why it is that we do what we do.

    November 24, 2016 at 3:34 pm #351209
    AvatarDreamerSK
    Participant
    • Topics: 24
    • Replies: 89
    • ☆☆

    Thanks. I have watched most of them but it seems I have forgotten the reason why…

    November 25, 2016 at 6:49 am #351321
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    It is because the interest is compounded – i.e. is based on the amount at the start, not the amount at the end,

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