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interest

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › interest

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 26, 2021 at 5:35 pm #636534
    johnbriane
    • Topics: 146
    • Replies: 147
    • ☆☆☆

    sir i created this question
    for a proper understanding

    Investment Wye offers one interest payment of
    20% at the end of its five-year life.

    what is the EAR ?

    so is this correct ( provided that the above is the question )

    (1+0.2)^0.2-1

    which is equal to 3.71%

    September 27, 2021 at 8:29 am #636558
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49600
    • ☆☆☆☆☆

    Yes, that is correct.

  • Author
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