Level 4 credit control  compound annual cost  Help please!
NM_X17
Registered Posts: 1
I am struggling with the calculation for compound annual cost. The example i have in my workbook is as follows 
(1+ 3/1003) ^ (365/6030)  1 ) x 100 = 44.86%
The part im really struggling with is the "to the power of"
I havent had to use this since school which is a very long time ago so not sure exactly how I use this on the calculator.
Any help and advice would be great.
(1+ 3/1003) ^ (365/6030)  1 ) x 100 = 44.86%
The part im really struggling with is the "to the power of"
I havent had to use this since school which is a very long time ago so not sure exactly how I use this on the calculator.
Any help and advice would be great.
0
Comments

Work out the two part of the equation first:
(3/1003)+1 = 1.03092784
and
(365/6030) = 12.1666667
The enter your answer from the first, press the 'to the power' button then enter the answer to the second part.
1.03092784 to the power of 12.1666667 = 1.4485848
Subtract 1 = 1.4485848  1 = 0.4485848
then multiply by 100 = 44.85848% (rounded up to 44.86%)
Does that help?Michael JH Webster AATQB FMAAT0
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