CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. Test Prep
  5. CFA-Level-I

Free CFA-Level-I Exam Braindumps (page: 130)

Page 129 of 991
PDF with 3963 Questions

David's gasoline station offers 4 cents off per gallon if the customer pays in cash and does not use a credit card. Past evidence indicates that 40% of all customers pay in cash. During a one hour period twenty-five customers buy gasoline at this station.
What is the probability that more than ten and less than fifteen customers pay in cash?

  1. .401
  2. .562
  3. .541
  4. None of these answers
  5. .380

Answer(s): E

Explanation:

Binomial distribution: n!(p^r)(q^(n-r))/r!(n-r)!. n = 25, r = 10, p = 0.4 q = 0.6 P(11) = 25!(0.4^11)(0.6^14)/11!14! = 0.1465
P(12) = 25!(0.4^12)(0.6^13)/12!13! = 0.1140
P(13) = 25!(0.4^13)(0.6^12)/13!12! = 0.0760
P(14) = 25!(0.4^14)(0.6^11)/14!11! = 0.0434
Summing up: 0.3799.



What monthly payment, beginning next month, would pay off a debt of $1,000 over 15 months, if the interest rate on the debt is 18% per year, compounded monthly?

  1. $5.12
  2. $66.67
  3. $74.94
  4. $68.92
  5. $76.51

Answer(s): C

Explanation:

On the BAII Plus, press 15 N, 18 divide 12 = I/Y, 1000 PV, 0 FV, CPT PMT. On the HP12C, press 15 N, 18 ENTER 12 divide i, 1000 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.



Suppose 1,600 of 2,000 registered voters sampled said they planned to vote for the Republican candidate for president. Using the 0.95 degree of confidence, what is the interval estimate for the population proportion (to the nearest tenth of a percent)?

  1. 77.7% to 82.3%
  2. 78.2% to 81.8%
  3. 69.2% to 86.4%
  4. None of these answers
  5. 76.5% to 83.5%

Answer(s): B

Explanation:

Interval estimate can be found from p +/- z[p(1-p)/n]^0.5. Here we have n = 2000, p = 1600/2000 = 0.8 and z = 1.96 (for 95%).
Therefore 0.8 +/- 1.96*0.008944 and we get 0.7825 and 0.8175.



What is the present value today of these annual cash flows: $5,000, $4,000, $3,000, $2,000, $1,000? Assume the first cash flow occurs 1 year from today and an interest rate of 8% per year, compounded annually.

  1. $12,854.32
  2. $15,000
  3. $13,598.41
  4. $12,591.14
  5. $5,000

Answer(s): D

Explanation:

You could solve this question using 5 different compound interest problems, but it is easier to solve them using the calculator's cash flow functions. On the BAII Plus, press CF 2nd CLRWork 0 ENTER DownArrow 5000 ENTER DownArrow DownArrow 4000 ENTER DownArrow DownArrow 3000 ENTER DownArrow DownArrow 2000 ENTER DownArrow DownArrow 1000 ENTER DownArrow DownArrow 2nd Quit. Then press NPV 8 ENTER DownArrow CPT. On the HP12C, press these keys: 0 BlueShift CFo 5000 BlueShift CFj 4000 BlueShift CFj 3000 BlueShift CFj 2000 BlueShift CFj 1000 BlueShift CFj. Then press 8 i, YellowShift NPV. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard.






Post your Comments and Discuss Test Prep CFA-Level-I exam with other Community members:

CFA-Level-I Discussions & Posts