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Forums › ACCA Forums › ACCA FM Financial Management Forums › Rounding in section A questions
I’m using the BPP practise and revision kit and am finding I’m getting many section A questions wrong due to rounding differences.
For example the calculation for finding the implicit annual interest rate on a 50 day repo in my answer looked liked this:
(50000/9650000)*365/50 = 3.78%
50000 being the increase on the original value
9650000 being the buy back value
365 being the number of days in the year per the question
50 being the number of days between sale and buy back
Answer is stated to 2 decimal places per the question
However the answer in the book is 3.80%
This is because they have broken the answer down as such:
50000/9650000 = 0.52% when stated to 2 decimal places (so rounded up)
0.52% *365/50 = 3.80
I understand the reason for the different answer.
My question is this, will there be any allowance for rounding differences for section A questions in the exam, where you won’t be able to show your workings?
I’m getting worried I’m going to fail this exam because, as the saying goes, there’s many ways to skin a cat!!
It’s question 27 in the work book if anyone is interested.
Thanks
This thread should clarify matters for you-
https://opentuition.com/topic/rounding-differences-4/
Hope this helps.
A more recent answer, albeit in a different subject that should reassure you-
