- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2013 Qu.3 (a)
Hello,
I got stuck in the finance cost saving part, where it says ‘with a saving of 5% per year or $34028 per year.’ , in the official acca answer.
Could you please shed some light for that part only?
Thanks.
I assume that you are happy with the fact that the overdraft falls by $680,551 (if not, then do ask again).
Since the interest rate on short-term borrowing is 5%, then having a lower overdraft will be less interest payable. Therefore the interest saving per year = 5% x 680,551 = $34,028.
Oh ok!
Thanks a lot!
You are welcome 🙂