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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › mar/june 2018 Q2
Dear Sir
can you pleas explain how the 1.42 kei is reached
The answer does not show steps or give me the backwards of the equation in your notes
10·5% = kei + (1 – 0·3) (kei – 5·4%) (240·8/400)
10·5% + 2·28% = 1·42 ke
I will type out the steps, but it really is basic algebra and not anything extra to learn for AFM.
10.5 = kei + 0.7 (Kei – 5.4) (240.8/400)
10.5 = kei + 0.4214 (kei – 5.4)
10.5 = kei + 0.4214 Kei – 2.27556
10.5 + 2.27556 = 1.4214 kei
12.77556 = 1.4214 kei
kei = 12.77556/1.4214
Thanks
You are welcome 🙂