Hi, this might be an important question for Level 3 since in the CBT, we can’t show our calculations. To how many decimal places should we generally round off our answer and intermediate calculations?
There can be situations where the answer by the institute might be 45.42 but our answer can be 45.40 or 45.46
Or in other scenarios such as Insurance questions, the numbers can be very different because of the interest rate that we have taken in the calculation. Please guide, how can we minimise these errors?
Example – If salary increases by 3% and liabilities have to be discounted by 4%. What should be the I/Y that we should use in the calculation? According to me, it should be 0.97%
They will specify as to how many decimal places are required