• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Q+A 1.15 (ii)

E

Eeddd

Member
Hi
Is there a mistake on the memo here or am i not reading the question correctly? in the question it seems like he Uk int rate is 1% and the US rate is 2%. But in the answer the multiply by the USA rate which they have as (1+ 1%/4)? I would expect it to be (1+2%/4)

The fact that they quote the exchange rate as $ 0.625 is also confusing. Or is this convention to refer to the fact that 0.625 pound=$1

Thanks!
 
Good spot

Yes indeed. The rates have been reversed in the solution for some reason. So you either need to reverse the question or reverse the rates in the solution - sorry!
 
You must log in or register to reply here.
Back
Top