CIMA / F Performance Question

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Craig9
Craig9 Registered Posts: 69 Regular contributor ⭐
Hi,

Two totally different topics but easier than two threads. Hopefully you can help please.

Firstly I'm stuck on figuring out the answer to this question on Net Terminal Cost -

It shows an example as the formula (1+r)n (small n, as in cubed in maths)

Figure out the net terminal cost after 5 years if NPV is £12,345 and discounted at 10% =

12,345 x (1+0.1) where n = 5
= £19,882

Now, I understand where all the figures come from, except the answer. Can someone please simplify this into steps for me to come out with the £19,882. I was doing 12,345 x 5.5 and that obviously is far out from the answer.


Second topic - CIMA

My final exam for AAT is on the 15th June and I plan to do CIMA afterwards. The registration date to do exams for CIMA in November will be 31st July and I expect to get my exam results from AAT around 29th July.

If I wish to sit exams in November for CIMA, what's the best option? Do I register for CIMA now and enter the exams before my results (if possible) or should I wait until I get the results, if so, will I have enough time to register for them?

Finally, my option for studying CIMA with tuition from Kaplan, BPP or a university is limited as it would mean a 35 mile trip to Glasgow for evening classes or weekend classes. I am self motivated when it comes to revising for exams, so from experience have people found it possible to pass the first two levels with just the books and other materials from Kaplan or BPP? I currently attend evening classes but do the majority of exams open learning for AAT but it is definitely a bonus to have a tutor a phone call or email away when struggling with a topic.

Cheers for your help and sorry for rambling on!!

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  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Craig9 wrote: »
    Firstly I'm stuck on figuring out the answer to this question on Net Terminal Cost -

    It shows an example as the formula (1+r)n (small n, as in cubed in maths)

    Figure out the net terminal cost after 5 years if NPV is £12,345 and discounted at 10% =

    12,345 x (1+0.1) where n = 5
    = £19,882

    Now, I understand where all the figures come from, except the answer. Can someone please simplify this into steps for me to come out with the £19,882. I was doing 12,345 x 5.5 and that obviously is far out from the answer.

    Hi Craig

    My maths is not brilliant but I think you need to complete the calculation as detailed below (hope the table lines up). I think you need to complete the calculation each year (if that makes sense).

    Column C
    Row 2 12345 12345
    Row 3 Yr 1 13579.5 =SUM(C2)*(1+0.1)
    Row 4 Yr 2 14937.45 =SUM(C3)*(1+0.1)
    Row 5 Yr 3 16431.195 =SUM(C4)*(1+0.1)
    Row 6 Yr 4 18074.3145 =SUM(C5)*(1+0.1)
    Row 7 Yr 5 19881.74595 =SUM(C6)*(1+0.1)


    Alternatively you can complete the calculation this way - =SUM(1+0.1)^5 = 1.61051 then multiply 12,345 by 1.61051 and the result is 19881.74595 rounded up will be 19,882.

    If I am wrong with my calculation, I do hope someone will post the correct solution to assist you (and me) :)

    I can't really advise you on the second question but am sure there will be others who are currently studying CIMA who can help.

    Hoping this helps.


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    I've added my responses in blue
    Craig9 wrote: »

    Second topic - CIMA

    My final exam for AAT is on the 15th June and I plan to do CIMA afterwards. The registration date to do exams for CIMA in November will be 31st July and I expect to get my exam results from AAT around 29th July.

    I recommend joining, contacting AAT and CIMA to explain that you will be progressing from AAT, there is a fast tracking of the AAT qualification candidates who need to have exemptions from the CIMA Certificate. It is only when you have been given these exemptions that you can apply to take the November exams. Things move quite quickly when the AAT exam results are published, so it wouldn't be a good time to go on holiday!!

    If I wish to sit exams in November for CIMA, what's the best option? Do I register for CIMA now and enter the exams before my results (if possible) or should I wait until I get the results, if so, will I have enough time to register for them?

    Finally, my option for studying CIMA with tuition from Kaplan, BPP or a university is limited as it would mean a 35 mile trip to Glasgow for evening classes or weekend classes. I am self motivated when it comes to revising for exams, so from experience have people found it possible to pass the first two levels with just the books and other materials from Kaplan or BPP? I currently attend evening classes but do the majority of exams open learning for AAT but it is definitely a bonus to have a tutor a phone call or email away when struggling with a topic.
    I am a tutor, so will leave the pros and cons of class v distance learning to others
    Cheers for your help and sorry for rambling on!!
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    Craig9 wrote: »
    Finally, my option for studying CIMA with tuition from Kaplan, BPP or a university is limited as it would mean a 35 mile trip to Glasgow for evening classes or weekend classes. I am self motivated when it comes to revising for exams, so from experience have people found it possible to pass the first two levels with just the books and other materials from Kaplan or BPP? I currently attend evening classes but do the majority of exams open learning for AAT but it is definitely a bonus to have a tutor a phone call or email away when struggling with a topic.

    Cheers for your help and sorry for rambling on!!

    I also found no local college or classes, and picked distance learning instead, but with a provider.

    There are people who have done it, so yes it can be done with the right motivation, but CIMA is different from AAT, more difficult, time pressured and questions are asked in a different way, which is something you really need to adjust to. That's just to make you aware of it.

    That said, I found that for CIMA having feedback from a tutor has helped me quite a lot, the practice exams I send in, helped to figure out if I did know how to answer a question, while for the AAT I hardly ever asked a question and it would have been just the same if I would have just bought the books, rather than a distance learning course.

    For the next units (provided I pass these two, which I am not so sure about just yet), I will be looking in the online classes. BPP offers them and that means Kaplan possibly has them soon as well. I would recommend you look into these as well, as it saves you travelling, but I don't know about the prices.
  • Craig9
    Craig9 Registered Posts: 69 Regular contributor ⭐
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    Jo Clark wrote: »
    Hi Craig

    My maths is not brilliant but I think you need to complete the calculation as detailed below (hope the table lines up). I think you need to complete the calculation each year (if that makes sense).

    Column C
    Row 2 12345 12345
    Row 3 Yr 1 13579.5 =SUM(C2)*(1+0.1)
    Row 4 Yr 2 14937.45 =SUM(C3)*(1+0.1)
    Row 5 Yr 3 16431.195 =SUM(C4)*(1+0.1)
    Row 6 Yr 4 18074.3145 =SUM(C5)*(1+0.1)
    Row 7 Yr 5 19881.74595 =SUM(C6)*(1+0.1)



    JC

    That is excellent! Thanks for your help, highly unlikely it will come up in the assessment but better to be prepared. Simple when you know how
  • Craig9
    Craig9 Registered Posts: 69 Regular contributor ⭐
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    SandyHood wrote: »
    I've added my responses in blue

    Thanks, I will register this week and give them a call with regards to exemptions.
  • Craig9
    Craig9 Registered Posts: 69 Regular contributor ⭐
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    Rinske wrote: »
    I also found no local college or classes, and picked distance learning instead, but with a provider.

    There are people who have done it, so yes it can be done with the right motivation, but CIMA is different from AAT, more difficult, time pressured and questions are asked in a different way, which is something you really need to adjust to. That's just to make you aware of it.

    That said, I found that for CIMA having feedback from a tutor has helped me quite a lot, the practice exams I send in, helped to figure out if I did know how to answer a question, while for the AAT I hardly ever asked a question and it would have been just the same if I would have just bought the books, rather than a distance learning course.

    For the next units (provided I pass these two, which I am not so sure about just yet), I will be looking in the online classes. BPP offers them and that means Kaplan possibly has them soon as well. I would recommend you look into these as well, as it saves you travelling, but I don't know about the prices.

    Rinske, if you don't mind me asking, who are you doing the qualification with where you get tutor feedback but don't have to attend classes or purchase the online system?

    I'm thinking Kaplan at the moment as it's what I know with AAT but the BPP site is rather convincing!
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    Craig9 wrote: »
    Rinske, if you don't mind me asking, who are you doing the qualification with where you get tutor feedback but don't have to attend classes or purchase the online system?

    I'm thinking Kaplan at the moment as it's what I know with AAT but the BPP site is rather convincing!
    I'm with the BPP and got their basic (plus?) distance learning package.

    Personally I prefer their books over Kaplan books (but that really is just personal preference), based on having both books for F1 from Kaplan and BPP. BPP books are extensive in explanations, where Kaplan is more concise and focussed on the exams and how to tackle the questions. I have not done distance learning via Kaplan though, I just got their books, so I can't compare which provider is better. I just know that currently I'm quite happy with BPP.

    Their distance learning package comes with online and paper books (the very same) and a tutor by email. I had two exams to send in for each course, one half exam and one full exam and do like the feedback on those.

    BPP offer online classes, which is apparently comparable to normal classes, except online. They are not cheap, but if you prefer classes, that might just be the better option.

    By just buying the books, you can always sign up for a revision course or question based day later, so you get some detailed feedback, if you feel you got stuck or lack confidence.

    Kaplan site has quite a few free resources available as well, which are worth having a look at, which are more directed towards how to build up some confidence and how to revise for the exams.

    As said tho, it's all a matter of motivation and I do think having a tutor telling you stuff can help quite a lot, but a lot depends on money, motivation and how well you are in doing your own research.
  • Craig9
    Craig9 Registered Posts: 69 Regular contributor ⭐
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    Thanks for all the info. I'm thinking distance learning with tutor help and maybe attend revision courses if I'm struggling. Start off with a couple of papers at operation level and see how I get on.

    Do you get a certificate for the entry level certificate in business accounting when you pay all the exemption fees for the five exams?
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    Not as far as I know. Which is logical to me, as you haven't sat any of the exams, instead you got an equivalent certificate/ something already.
  • Chinless Wonder
    Chinless Wonder Registered Posts: 61 Regular contributor ⭐
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    My move from AAT to CIMA was ALL very last minute, mainly because there was a delay in getting my Unit 10 project signed off . I also had hassle because CIMA wanted to see proof of my previous qualifications (ie my uni degree) which meant getting an academic transcript from my Uni! A photocopy of my degree wasn't enough... !

    So to agree with the previous person - talk to AAT and CIMA *now* to get balls rolling etc!

    Regarding provision of tuition, well I'm not the right person to ask as I'm having huge problems with my college over this year's quality of teaching (at Strategic level). I chose college as it was cheapest and the only option for evening classes. But I'd say if you can afford to go to BPP or Kaplan do so. I did AAT at Kaplan and the teaching and support was uniformly excellent. It's not just the teacher - it's the quality of the notes and the text books that matter too.

    I'm very glad I went on to do CIMA from AAT, I hope it works out well for you too.

    CW
  • Craig9
    Craig9 Registered Posts: 69 Regular contributor ⭐
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    Folks, another question for you...

    My plan is to sit F1 and P1 in November, if I order the books and do the exams and then fail one or both of them. What happens when it comes to re-sits? Do I need to wait until May and will I need to buy a new book for the same subject for the May exam if rates etc have changed?

    Cheers
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    If you fail in Nov you might feel ready to sit the March exam

    Have you looked at the CIMA website?
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    I thought you needed a provider for this and couldn't just buy the books?

    I might be wrong on that, I just thought that was a requirement.
    Do you know if they changed that rule Sandy?
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    There are a limited number of places and the fees are higher, but anyone who failed in Nov is allowed to re-sit in March.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    Oh great! I thought it was just if you were taking classes via a provider.

    That's good news for my E1 resit :)

    Thanks Sandy!
  • Craig9
    Craig9 Registered Posts: 69 Regular contributor ⭐
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    So are the re-sits for Novemeber in March? And then if you wanted to re-sit it in May then you would need to buy the new book for May exams?
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