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    • lucieatsea
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      Hi, how do I find the forum categories or ask a question?
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  • rvs29
    Hi @genesta
    I am happy to help!! I actually struggled with this question too, and it takes quite a bit of time to work through.
    I am going to try and tell you how I work it out in the simplest way! It's a lot simpler if you are doodling on some paper to work this out. There are 2 steps to follow:

    Step 1: work out the balance remaining from the above. You want to work this out based on what the % of the balance is at the END of period 3 - rolling over to period 4!! Work out what has already been paid, and what hasn't.

    Purchases period 1 --> 25% will have already been paid in period 2, and 40% will have already been paid in period 3. Balance left which still needs to be paid in period 4 is 35%.

    Purchases period 2 --> 25% will have already been paid in period 3 - this leaves 75% which still needs to be paid.

    Purchases period 3 --> None of this has been paid - so the full 100% of the balance is outstanding.

    Once you have worked out the balance left, you need to turn it in a figure.
    November 7
    • rvs29
      rvs29
      Once you have worked out the balance left, you need to turn it in a figure. To get the figure, you need to do 100% / BAL LEFT % * BAL LEFT IN £ (from questions)
      FOR EXAMPLE TOTAL PURCHASES FROM PERIOD 1 = 100% / 35% * £30135 = £86100
      PERIOD 2 PURCHASES = 100% / 75% * £66900 = £89200
      PERIOD 3 PURCHASES = £92400 (as none of the balance has been paid)


      Step 2: work out the schedule of what needs to be paid, and when.

      Purchases from period 1 will be paid in the following period:
      2) 25% of £86100 (paid, so no need to do anything for this period)
      3) 40% of £86100 (paid, so no need to do anything for this period)
      4) 35% of £86100 (UNPAID)

      Purchases from period 2:
      3) 25% of £89200 (paid, so no need to do anything for this period)
      4) 40% of £89200 (UNPAID)
      5) 35% of £89200 (UNPAID)

      Purchases from period 3:
      4) 25% of £92400 (UNPAID)
      5) 40% of £92400 (UNPAID)

      Put in the figures worked out in step 1, to work out the payable at the end of period 4 and 5:

      Period 4 =
      Purchases period 1 - £86100*35% = £30135
      Purchase period 2 - £89200*40% = £35680
      Purchases period 3 - £92400*25% = £23100
      TOTAL PAYABLE'S AT PERIOD 4 = £88915

      I have worked out period 4 for you, and hopefully with this method you can work out period 5?

      I know it was really long, but it is hard to explain when typing!! If I can attach a picture of my workings on paper I will!

      If you don't quite understand, let me know and I will try and help you again :)

      It wouldn't let me upload a picture (but this is how I would structure it on paper)
      step 1 :

      bal remaining at start of period 4

      Period
      purchases 1 2 3 4 5
      1 25% 40% 35%
      2 25% 75%
      3 100%


      step 2 : schedule of payments

      Period
      purchases 1 2 3 4 5
      1 25% 40% 35%
      2 25% 40% 35%
      3 25% 40%
    • genesta
      genesta
      Thank you!!!!!!! YOU are the asset here in forum. Thank you.
      I got this.
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      @truecockney can you double check your membership number please?
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