financial perfomance help

kimmie1986
kimmie1986 Registered Posts: 39 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
hi

im trying to work out the net terminal value on a calculator but i don't have a clue, the example in the kaplan book is

£12345*(1+0.1)n where n is 5

this should equal £19882

can anyone help explain how i work this out!!!

Thanks

Comments

  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    n is to the power of, you will need a scientific calculator for this. My calculator has an x to the power y button for it. Where the x is normal size and the y is a small one next to it.

    Alternatively you can drop it in excel to work it out at home in which case the formula is =12345*(1+0.1)^5, but that probably won't help you on an exam!
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    That's weird, I thought you weren't allowed scientific calculators in exams anyway?
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Gem7321 wrote: »
    That's weird, I thought you weren't allowed scientific calculators in exams anyway?

    You're not allowed calculators that can store text. Most scientific calculators which you'd use for GCSE/A level won't.
  • kimmie1986
    kimmie1986 Registered Posts: 39 Regular contributor ⭐
    thank you i have final found the button on my calculator, on my one the y is bigger than the x and i managed to get the answer yay

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