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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.
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