Hi, I recently did the Specimen FM paper on the practice platform and often use the formula (1+r)^-n for discount factors instead of the formulae sheet.
However, this resulted in a wrong answer for question 29 because the emaxiner expected the DF to three decimal places.
Does the marking scheme make allowances for rounding the discount factor in the FM exam? Should I always use the formulae sheet?
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FM - Rounding Discount Factors for Sections A & B
3y ago#1In sections A and B it will not matter in the real exam because the question will either specify that an answer is required to (say) the nearest thousand (in which case the rounding becomes irrelevant) or the computer will allow both answers to be marked as correct :-)
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