I cannot understand how the model answer came to the figure of 1417 for the insurance, could someone please work me through it? Thanks, Here is the question and answer:Attachment 528231528233
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- Thread Starter
Last edited by Shazzy69; 04-05-2016 at 16:15.
- 04-05-2016 16:10
- 08-05-2016 21:39
Insurance of £1600 was paid on 1 JAN
Insurance payable on 1st jan is for a YEAR so Jan to Dec, but we only need until May
So 1600 divided by 12 months (a year) times 5 months (until may) gives £666.6
Add the £750 which was prepaid in the beginning
This gives £1416.6 round up to £1417
Hope that makes sense!
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