Which Formula to use for Cash Settlement Discount Unit 15

RichardKRichardK Well-KnownRegistered Posts: 107
You may be aware that of the discussions regarding which formula to use for Unit 15 Cash Management and Credit Control.


This formula is on Page 183 of the Osborne Unit 15 book and in the Kaplan books.

According to Osborne Books, who I have spoke to today and who are in close contact with the AAT, the formula is correct, up to date and in line with current AAT policy.

I have also spoke to my ex-tutors who have just recently held a UNIT 15 exam and they have confirmed the same. There has been no change in requirement for this formula.


You may find threads on this forum stating otherwise.

Other forum users are wrongly suggesting that you must use the more complex compounded interest formula, which is NOT shown in the Osborne or Kaplan books.

This is suggesting that the Osborne and Kaplan books are NOT up to date.


Please post your queries regarding this and I will pass them on to Osborne books.

Regarding the new AAT qualification for next year (QCF qualification). Osborne have not been notified of any changes to this formula for the QCF exams either.

To confirm this, you can contact Osborne books here http://www.osbornebooks.co.uk/contact

Comments

  • messedup89messedup89 Experienced Mentor Registered Posts: 1,281
    OMG another new thread on this? Let it drop! Its confusing students!
  • RinskeRinske Font Of All Knowledge Registered Posts: 2,453
    Do you ever give up?

    I'm sorry I'm getting really fed up with it now. There are a lot of people reading these forums for help and often they will use the search function, they will be able to see all the threads made, including your explanation and the discussion about which one to use. This thread does not seem to add any value to the posts you made earlier. I have read all the comments and arguments made in the previous two threads you started and you seem to like to argue and are trying to make a point, rather then providing constructive reasons as to why simple interest should be used, rather than compound interest.

    Thank you for checking with the osborne books, but as they are just providing the books, with the calculation based on simple interest, and not giving the tests or assessing them, that doesn't help much. Have you considered asking the AAT? As they are providing and assessing the skill tests and would be the only ones being able to provide a clear answer if in doubt.

    By all means, this is not to offend you, but please let it go...
  • RichardKRichardK Well-Known Registered Posts: 107
    Rinske wrote: »
    Do you ever give up?

    I'm sorry I'm getting really fed up with it now. There are a lot of people reading these forums for help and often they will use the search function, they will be able to see all the threads made, including your explanation and the discussion about which one to use. This thread does not seem to add any value to the posts you made earlier. I have read all the comments and arguments made in the previous two threads you started and you seem to like to argue and are trying to make a point, rather then providing constructive reasons as to why simple interest should be used, rather than compound interest.

    Thank you for checking with the osborne books, but as they are just providing the books, with the calculation based on simple interest, and not giving the tests or assessing them, that doesn't help much. Have you considered asking the AAT? As they are providing and assessing the skill tests and would be the only ones being able to provide a clear answer if in doubt.

    By all means, this is not to offend you, but please let it go...

    Osborne and Kaplan are in close liason and contact with the AAT. So your points are irrelevant.
  • RichardKRichardK Well-Known Registered Posts: 107
    Rinske wrote: »
    Do you ever give up?

    I'm sorry I'm getting really fed up with it now. There are a lot of people reading these forums for help and often they will use the search function, they will be able to see all the threads made, including your explanation and the discussion about which one to use. This thread does not seem to add any value to the posts you made earlier. I have read all the comments and arguments made in the previous two threads you started and you seem to like to argue and are trying to make a point, rather then providing constructive reasons as to why simple interest should be used, rather than compound interest.

    Thank you for checking with the osborne books, but as they are just providing the books, with the calculation based on simple interest, and not giving the tests or assessing them, that doesn't help much. Have you considered asking the AAT? As they are providing and assessing the skill tests and would be the only ones being able to provide a clear answer if in doubt.

    By all means, this is not to offend you, but please let it go...

    Osborne and Kaplan are in close liason and contact with the AAT. So your points are irrelevant.
  • messedup89messedup89 Experienced Mentor Registered Posts: 1,281
    RichardK wrote: »
    Osborne and Kaplan are in close liason and contact with the AAT. So your points are irrelevant.

    everyones points are relevant, not just yours
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    RichardK wrote: »
    Osborne and Kaplan are in close liason and contact with the AAT. So your points are irrelevant.

    As is Sandy

    Please give it a rest now
  • jow774jow774 Trusted Regular Registered Posts: 465
    RichardK wrote: »
    Osborne and Kaplan are in close liason and contact with the AAT. So your points are irrelevant.

    For someone sooo intelligent you have alot of spare time on your hands!
  • RichardKRichardK Well-Known Registered Posts: 107
    As is Sandy

    Please give it a rest now

    Hi, I appreciate your answer but unless someone can show me some evidence from Osborne suggesting their book is out of date or wrong then students should continue using the formula in their books.
  • CriggersCriggers Feels At Home Registered Posts: 53
    Is a new thread necessary? That's a rhetorical question.

    It would be less confusing if you posted this in the same thread as before. Even though there is a disagreement there, at least forum searchers would be able to check one thread from start to finish rather than chop and change between threads which will have contradicting information.

    Creating this thread was pure arrogance. This is a reply to a thread and should be treated as such. We cannot know whether you are right or wrongwithout further discussion or enquiry so why create another topic? You can't even prove that you made a call or spoke to anybody at any organisation. You also have a post count of 97 and have been a member for a matter of weeks which will always raise a question of how reliable you are.

    Please don't take offence, but it's the truth.
  • RichardKRichardK Well-Known Registered Posts: 107
    Criggers wrote: »
    Is a new thread necessary? That's a rhetorical question.

    It would be less confusing if you posted this in the same thread as before. Even though there is a disagreement there, at least forum searchers would be able to check one thread from start to finish rather than chop and change between threads which will have contradicting information.

    Creating this thread was pure arrogance. This is a reply to a thread and should be treated as such. We cannot know whether you are right or wrongwithout further discussion or enquiry so why create another topic? You can't even prove that you made a call or spoke to anybody at any organisation. You also have a post count of 97 and have been a member for a matter of weeks which will always raise a question of how reliable you are.

    Please don't take offence, but it's the truth.


    Hi,
    Please call Osborne youself to verify this instead of making ridiculous comments.

    Regards
  • messedup89messedup89 Experienced Mentor Registered Posts: 1,281
    RichardK wrote: »
    Hi,
    Please call Osborne youself instead of making stupid comments.

    Regards

    Wow you dont think much of yourself do you? Everyone else is wrong in every conversation you get into. Never you........
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    RichardK wrote: »
    Hi, I appreciate your answer but unless someone can show me some evidence from Osborne suggesting their book is out of date or wrong then students should continue using the formula in their books.

    Richard at the momment i dont think people even care anymore after 4 new threads about the same argument and yes i will say kaplin do get it wrong and yes they do a lot two pages alone from this years Personal tax books even to the extent of putting incorrect answers to their own questions - and yes they wouldnt do a re-print and yes i managed to get a print off of all the corrections. So yes the books do get it wrong

    Now can we drop it and move on to something constructive
  • RichardKRichardK Well-Known Registered Posts: 107
    jow774 wrote: »
    For someone sooo intelligent you have alot of spare time on your hands!


    Not worth replying to.
  • messedup89messedup89 Experienced Mentor Registered Posts: 1,281
    RichardK wrote: »
    Not worth replying to.

    hmmmmm im sure that was a reply. Not that intelligent :)
  • jow774jow774 Trusted Regular Registered Posts: 465
    RichardK wrote: »
    Not worth replying to.

    You just did.
  • timgrifftimgriff Feels At Home Registered Posts: 55
    RichardK wrote: »

    Other forum users are wrongly suggesting that you must use the more complex compounded interest formula

    Isn't the only difference between the two a ^ and a x ???
  • CullenCullen Experienced Mentor Registered Posts: 592
    Tim, what exactly do you do for Devon?
  • timgrifftimgriff Feels At Home Registered Posts: 55
    Devon knows!
  • blobbyhblobbyh Font Of All Knowledge Registered Posts: 2,415
    Rarely has the forum needed a 'Block user' button more than it does right now...
  • messedup89messedup89 Experienced Mentor Registered Posts: 1,281
    i think the point to 'let it drop' has been noted
  • RichardKRichardK Well-Known Registered Posts: 107
    timgriff wrote: »
    Isn't the only difference between the two a ^ and a x ???

    Hi,
    thank you for the post.
    The reference made by Sandy was that students must not use the formula in the Osborne or Kaplan book and that if they do they will not be awarded full marks for it.
  • RowanBRowanB Well-Known Registered Posts: 158
    Richard, have you considered starting another thread about annalised percentage rate, because I don't think the subject has been fully covered on this forum?

    I was thinking maybe you should explore the psychology behind people's inclination to using one formula over the other. Why is it that some people prefer effective APR and some people prefer nominal APR? Is it compulsive?

    You've only really scratched the surface of APR imo.
  • craggle87craggle87 Settling In Nicely Registered Posts: 24
    Cheers

    To add a positive note on this thread..

    1, I didn't know there was a search box to search threads..i do now.
    2, More importantly I have an exam on Unit 15 tomorrow and didn't know how to calculate this formula. I haven't been able to find it in my book as their is no reference to it in the index so thanks to this thread I now know the formula and fingers crossed it may show up tomorrow :)

    So thanks Richard.
  • craggle87craggle87 Settling In Nicely Registered Posts: 24
    RichardK wrote: »
    The reference made by Sandy was that students must not use the formula in the Osborne or Kaplan book and that if they do they will not be awarded full marks for it.

    I have also just spotted this....Doh

    I am new to this so as everyone has been mentioning...let it go! haha.
    Half the marks will just have to do.
  • RichardKRichardK Well-Known Registered Posts: 107
    craggle87 wrote: »
    I have also just spotted this....Doh

    I am new to this so as everyone has been mentioning...let it go! haha.
    Half the marks will just have to do.

    Hi,
    Thank you for your feedback.

    Under no circumstances will you be marked down for using this formula.

    You will see from the original post that the AAT have not changed the formula and 30 students at East Sussex have just used the formula in their Unit 15 Exams and they use the Osborne books.

    They will all be awarded full marks for using this formula.

    Please ignore any posts that suggest otherwise.
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