QUESTION: 629

How many monthly deposits of $50, beginning next month, will you need to make into an account that pays 6% per year, compounded monthly, before you will have $20,000?

110.59
201.49
400.00
220.27
287.71

Answer(s): D

Explanation:

On the BAII Plus, press 6 divide 12 = I/Y, 0 PV, 50 PMT, 20000 +/- FV, CPT N. On the HP12C, press 6 ENTER 12 divide i, 0 PV, 50 PMT, 20000 CHS FV, n. Note that the HP12C will display 221 as the answer. Make sure the BAII Plus has the value of P/Y set to 1.

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QUESTION: 630

What annual interest rate, compounded annually, would cause a series of 10 deposits of $1,000 to accumulate to $18,000, if the first deposit is made one year from today?

14.49%
12.52%
12.69%
11.84%
35.82%

Answer(s): B

Explanation:

On the BAII Plus, press 10 N, 0 PV, 1000 PMT, 18000 +/- FV, CPT I/Y. On the HP12C, press 10 n, 0 PV, 1000 PMT, 18000 CHS FV, i. Make sure that the BAII Plus has the P/Y value set to 1.

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QUESTION: 631

What is the remaining balance on a $90,000 loan after making monthly payments of $660.39 for 10 years, if the interest rate is 8% per year, compounded monthly?

$51,948.80
$81,343.92
$0
$76,204.11
$78,951.89

Answer(s): E

Explanation:

On the BAII Plus, press 120 N, 8 divide 12 = I/Y, 90000 PV, 660.39 +/- PMT, CPT FV. On the HP12C, press 120 n, 8 ENTER 12 divide i, 90000 PV, 660.39 CHS PMT, FV. The remaining balance will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.

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QUESTION: 632

What is the Net Present Value of this series of annual cash flows at an interest rate of 14% per year: Year 0:
<$4,000>, Year 1: $2,000, Year 2: $0, Year 3: $0, Year 4 to indicate a negative number).

$214.37
<$67.49>
$122.71
$1.21
<$179.41>

Answer(s): C

Explanation:

On the BAII Plus, press CF 2nd CLRWork 4000 +/- ENTER DownArrow 2000 ENTER DownArrow DownArrow 0 ENTER DownArrow DownArrow 0 ENTER DownArrow DownArrow 4000 ENTER DownArrow DownArrow 2nd Quit. Then press NPV 14 ENTER DownArrow CPT. On the HP12C, press these keys: 4000 CHS BlueShift CFo 2000 BlueShift CFj 0 BlueShift CFj 0 BlueShift CFj 4000 BlueShift CFj. Then press 14 i, YellowShift NPV.
The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard. Make sure the BAII Plus has the P/Y value set to 1.

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Free CFA-Level-I Exam Braindumps (page: 158)

QUESTION: 629

Explanation:

QUESTION: 630

Explanation:

QUESTION: 631

Explanation:

QUESTION: 632

Explanation: