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Free CFA-Level-I Exam Braindumps (page: 143)

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PDF with 3963 Questions

How many deposits of $450 a month, beginning next month, are needed before an account has $200,000 in it, assuming it had a balance of $0 at the beginning and that interest is 6% per year, compounded monthly?

  1. 166.79
  2. 234.6
  3. 119.48
  4. No solution/Error
  5. 444.44

Answer(s): B

Explanation:

One of the two dollar amounts must be entered as a negative number and the other as a positive number or an error will result. On the BAII Plus, press 6 divide 12 = I/Y, 0 PV, 450 PMT, 200000 +/- FV, CPT N. On the HP12C, press 6 ENTER 12 divide i, 0 PV, 450 PMT, 200000 CHS FV, n. Note that the HP12C returns a result of 235. Make sure the BAII Plus has the P/Y value set to 1.



Suppose you need $1,500 in 15 months. How much must you deposit today, if the deposit will earn interest at 8% per year, compounded monthly?

  1. $472.86
  2. $1,249.93
  3. $1,357.71
  4. $291.77
  5. $341.55

Answer(s): C

Explanation:

On the BAII Plus, press 15 N, 8 divide 12 = I/Y, 0 PMT, 1500 FV, CPT PV. On the HP12C, press 15 n, 8 ENTER 12 divide i, 0 PMT, 1500 FV, PV. Make sure the BAII Plus has the P/Y value set to 1.



Where does the coefficient of variation (CV) generally lie between?

  1. -1 and +1
  2. -3 and +3
  3. None of these answers
  4. 0% and infinity
  5. Unlimited values

Answer(s): D

Explanation:

CV always lies between 0% and infinity. The larger the CV, the larger the dispersion.



What deposit would you need to make today in order to withdraw $200 a month, beginning next month, for the next 5 years, if the deposit will accrue interest at 8% per year, compounded monthly?

  1. $7,237.66
  2. $9,863.69
  3. $11,492.59
  4. $8,399.27
  5. $9,141.23

Answer(s): B

Explanation:

On the BAII Plus, press 60 N, 8 divide 12 = I/Y, 200 PMT, 0 FV, CPT PV. On the HP12C, press 60 n, 8 ENTER 12 divide i, 200 PMT, 0 FV, PV. 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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