Hi. I was looking at some different ways to calculate the profit and I am getting different answers and was wondering why they give different answers.(in particular, the method used in the core reading and that in some exam papers) for eg: Chapter 22, Page 16, Q22.7 Using method on the exam solution for April 2001 Q4, to calculate the profit, I used the following formula: 110(1.03)^6 - 0.25(110)(1.03)^5 - 0.25(110)(1.03)^3-0.25(110)(1.03)-33 = 4.87. Can you see why is this different to the solution in the core reading? Thanks.
I think you're having problems using a calculator! I get the same answer of 8.1 as the example in the course notes. By the way, the example is ActEd text, not Core Reading.
