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Hello,
I have a small question on the financial instrument part of this question… W5 answer (pg126)
There is a calculation for a financial liability instrument where a 30 million cash injection will be paid back as 37.5 million.. what i do not understand is why the interest recieved per annum in the calc is 1.76 million? The rate is 4.7%.. i thought it would be either the 30mil * 4.7%= 1.41mil or 30+3(effective interest)= 33*4.7%= 1.55mil?
HELPPPPPPP
Thanks
Jen
Oh actually i think i just answered my question its the 37.5million *4.7%= 1.76.. doohhhhhhh…….. i really need to engage my brain! Sorry for the bother!!! ALthough if anyone has a dummies guide to financial instruments then please inform me!
Thanks
Jen
Good luck next week – let’s hope that any question in the examination is pitched at dummy level!
🙂
I can hope and pray!!!!
Thanks for the luck, i am trying to get as much as possible!!!!
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