Hi I have just completed this paper. I have a few questions: 1) Instead of using i(p) to calculate the annuity factor I used i(12)/12 assuming the payments are made every month, so for the new product there were 300 payments. This meant the annuity factor I got was slightly higher than the annuity factor in the model solutions. I did not see anything in particular that showed me I should be using i(12) and assuming annual payments. Can you point this out to me if I have missed it? Would I have been marked down for the method I used? 2) I did not round the cashflows to 2dp, I should know to do this, but would I get marked down for not doing this? Thank you, Rachael
You didn't miss anything, it was fine to use monthly payments and would have scored full marks, just ensure you make any necessary assumptions. You may lose some marks under the modelling technique and practice marks (under the 'spreadsheet is easy to follow' marks) if it makes it harder to follow but not many. As ever with CP2, it's all about marginal gains though, if you can avoid losing anything here it will help get you closer to the pass mark! Sarah
