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Question 1 Exam June 2012

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Question 1 Exam June 2012

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • November 9, 2016 at 1:14 pm #348207
    Miguel
    Member
    • Topics: 38
    • Replies: 30
    • ☆☆

    Hi John,

    I have a silly question im starting with the practical review as I have already gone through the notes a couple of times, my question is why in the year 2 of the part a-project 1, the price is 25.96, the price is set as 24 and with the inflation(4%) is 24.96 ?

    November 9, 2016 at 2:10 pm #348223
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54830
    • ☆☆☆☆☆

    By time 2 there are two years of inflation.

    So the actual selling price = 24.00 x (1.04^2) = 25.96.

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