Hello,
I would like to ask how to calculate the price with inflation included?
in the first year I have 25 + 4%= 26
i am not sure how the second year price is calculated = 25.96
Thank you
Ask the Tutor ACCA FM
June 2012/question 1
(1.04)^2*24=25.96
I found it...
Sorry for taking your time to read the question
13y ago#2No problem :-)
Why is it not calculated this way in the June 2011 paper?
What is the difference?
Thanks
it is:
5*(1.03)^1=5.15 - first year
5*(1.03)^2=5.3045 or 5.305 - second year
The explanation about the the sign ^ is the following:
if we have let's say
3*3 I write it down as 3^2
or 3*3*3 as 3^3
Got it now, thanks a mill for your help, appreciate it!
13y ago#7:-)
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