The management of receivables - Simple settlement discount - ACCA Financial Management (FM)

[@gideonatichogbe7893]

Thanks so much John Mofatt. You really inspire me

[@AhmedKhan-xw2sb]

The BPP notes that I have read, show a different way where they don't use the 1+r. They simply do: 4/96 * 12/2 and I've tried that way on the OpenTuition example and it gives a significantly different answer. I'm confused and worried about what's right and what's not

[@opentuition]

The approach in our lectures is correct and is the approach used in past exam questions. (If you have more questions then please ask in the free Ask the Tutor Forums on our free website. Our tutors do not always monitor questions here, but always answer posts in our Ask the Tutor Forums).

[@AhmedKhan-xw2sb]

@@opentuition I appreciate your response and I'll take your guarantee for it. Thanks!

[@Ilusinghyadav]

In BPP they are calculating simple interest whereas video solution is based on compound interest. ACCA prefers compound interest