P2 June 2013 Q1 — OpenTuition Forums

Ppaul1234511y ago

Hi there Could some one please tell me where they get the figure of 2.76 for the interest credit amount for working 8 - financial assets, its not making any sense to me?? Or even better if anyone knows where theres a better answer paper as the ACCA one is a nightmare to follow?? Thanks

MikeLittleTutor11y ago#1

It's 6% - the effective rate of interest on the amortised cost brought forward of 46.01 6% x 46.01 = 27.6 If you now deduct the actual interest PAID calculated at 3% of the face value of the instrument, you then arrive at the additional finance cost to be included within the PorL Better?

Ppaul1234511y ago#2

Thanks Mike!