Hi,
I am having trouble understanding how to type the discount annualisation working in to my calculator
(100/100-d)*365/t-1
Doing it like this gives me a completely different answer to Chris?
Am I being dense?
CIMA Forums
Working Capital Discount Calc
No,
I think there is a mistake in the answer that needs to be updated, is should be noted in a previous thread.
Thanks
Hi please help.
I am having similar issue in video it shows (100/100-2) *365/20 -1 = 0.4458
But when I put into the calculator I get 17.62
Where am I going wrong?
Thank you
Hello,
not sure where this example comes from, but you have a slight mistake in formula. There should be a power sign not multiplication in between, so it is: [(100/100-2)^365/20] -1. Now when you put it to your calculator it should equal to 0.4458.
Hope this helps.
Best,
Anita
Have you manged to be able to work out how to use your calculator? Let me know if you're still struggling.
Thanks
That's correct but it can still sometimes be a challenge to enter the numbers in the calculator in the correct order.
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