- This topic has 4 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
Hi, John!
I have a question on (c) task.
Once again my answer did not agrees with LSBF’s. However, my answer reconciles with BPP’s answer.. 🙂
The differences in answers of BPP and LSBF is follows.
LSBF:
If interest FALLS by 0.5%, then Net cost of loan = £400,875 (effective int. cost 5.35%)BPP (This book calculates Net cost of loan in percents only):
If interest FALLS by 0.5%, then Net cost of loan = 5.215%I’ve calculated Net cost of loan as £391,125, and this stands for 5.215% effect. cost of loan – which is directly correlates with BPP’s answer.
Could you please explain which answer is right?
Nick
Reference to LSBFs answer:
Actual interest paid (5.25% x 2/12 x £45m) = (393,750)
Net premium paid = (7,125)
Net cost of loan = (400,875)
Effective interest cost (£400,875 / £45m) x (12 / 2) = 5.35%The BPP answer is right and is the same as the examiners own answer.
LSBF do seem to be doing some strange things. I guess it is because BPP are an ACCA approved publisher and therefore are able to publish the examiners own answers. LSBF are not an approved publisher and so cannot print the examiners own answers 🙂
John, thank you for clarification!
You’re doing great job teaching students all over the world.
And thank you very much for your great video lectures.
- The topic ‘FNDC 06’ is closed to new replies.