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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › financial instrument ifrs9
Example 1 of the 3 requirement ,
the redemption premium was $100*10,000 * 1.05 (5%) = $1,050,000.
where did we get 1.05?
Hi,
To increase something by 5% then we need to multiply by 1.05, i.e 1 (the original amount) plus the 5% (0.05 as a decimal) uplift is 1.05.
Thanks
P.S. Ever heard of of the words please and thank you?
Oh thank you very much Chris. Some times exams nerves cracks off brain . I even forgot that premium signified increase.
Nerves are natural, and we all get them. The best way to ease them is to keep practising the questions so that you are ready and confident for the exam.
Thanks