QUESTION: 933

If your estate were to receive $100 a year, beginning next year, for 100 years, what is the equivalent single amount today that this series of cash flows is equal to, assuming interest is 5% per year, compounded annually?

$11,302.37
$10,000.00
$2,041.54
$58.42
$1,984.79

Answer(s): E

Explanation:

On the BAII Plus, press 100 N, 5 I/Y, 100 PMT, 0 FV, CPT PV. On the HP12C, press 100 n, 5 i, 100 PMT, 0 FV, PV. Note that the answer will be displayed as a negative number. As a side note, continuing the $100 payments for 10,000 years only increases the PV today by a little over $15. This is because the $100 payments beyond 100 years from now would add very little to the PV today. Make sure the BAII Plus has the value of P/Y set to 1.

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QUESTION: 934

What monthly payment would repay a $28,500 car loan over 60 months, assuming your loan has an interest rate of 3.9% per year, compounded monthly?

$492.29
$764.58
$423.75
$550.58
$523.59

Answer(s): E

Explanation:

On the BAII Plus, press 60 N, 3.9 divide 12 = I/Y, 28500 PV, 0 FV, CPT PMT. On the HP12C, press 60 n, 3.9 ENTER 12 divide i, 28500 PV, 0 FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.

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QUESTION: 935

If you deposit $5,000 into an account paying 9% per year, compounded monthly, how much do you have in the account in 10 years?

$5,403.52
$12,001.66
$9,116.87
$2,039.69
$12,256.79

Answer(s): E

Explanation:

On the BAII Plus, press 120 N, 9 divide 12 = I/Y, 5000 PV, 0 PMT, CPT FV. On the HP12C, press 120 n, 9 ENTER 12 divide i, 5000 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.

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QUESTION: 936

Suppose you need $500 in 9 months. How much must you deposit today, if the deposit will earn interest at 6% per year, compounded monthly?

$522.96
$478.05
$381.95
$295.95
$291.77

Answer(s): B

Explanation:

On the BAII Plus, press 9 N, 6 divide 12 = I/Y, 0 PMT, 500 FV, CPT PV. On the HP12C, press 9 n, 6 ENTER 12 divide i, 0 PMT, 500 FV, PV. Make sure the BAII Plus has the P/Y value set to 1.

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Free CFA-Level-I Exam Braindumps (page: 234)

QUESTION: 933

Explanation:

QUESTION: 934

Explanation:

QUESTION: 935

Explanation:

QUESTION: 936

Explanation: