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I seem to have worked this out but forgot it again while revising, looked at my notes couldnt find it
10.5 remains as it is
2.28 i got by multiplying 240.8/400 with post tax KD of 3.78%
I am getting 0.42 by multiplying 240.8/400.
How do i make 0.42 to 1.42. Missing the magic additional 1
above in reference to the archive post i found which is showing in the list again
It is using the MM Proposition 2 formula.
10.5 = ke + 0.7 x (ke – 5.4) x (240.8/400)
10.5 = ke + 0.7 x (ke – 5.4) x 0.602
10.5 = ke + 0.42ke – 2.28
12.78 = 1.42ke
dilnoza90: Please do not answer in this forum because it is the Ask the Tutor Forum and you are not the tutor (but please do help people in the other Paper AFM forum 🙂 )
ok so i have solved 3 similar questions and noticed we simply add 1 everytime.
We add 1, not because it is some special rule but because it is basic algebra.
You must have learned at school that, for example, 2x + 3x = 5x, or that 4x + 7x = 11x.
Similarly, x + 3x = 4x.
This is no different except that instead of x we have Ke.
So Ke + 3Ke = 4Ke.
Or in this example, Ke + 0.42Ke = 1.42Ke
ok, i was weak in complex maths so dont recall, was comfortable with finding one x not two. either way without understanding the equation which is a daunting task itself in my opinion, ill simply remember to add 1.
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