RipOff Dealers, Inc. offers a financing plan for car purchases, charging 2% per month. If a car costs $30,000, what's the monthly payment you will have to make - starting a month from now - if you need 5 years to pay off the debt on the car?
Answer(s): C
The payments constitute an ordinary annuity. The present value of an n-period annuity that starts paying at the end of the current period equals PV = (C/r)*[1 - 1/(1+r)^n] where C is the payment per period and r is the one- period interest rate. In this example, the annuity is over 5*12 = 60 periods and the per period rate equals 2%.So the present value of the payments equals (C/0.02)*[1 - 1/1.02^60] = 30,000 (given). Solving for C gives the per month payment equal to $863.
If you buy an item for $500 and agree to pay for it with 24 monthly payments of $24.50, beginning next month, what annual interest rate, compounded monthly, are you being charged?
The interest rate returned by the calculator will be the periodic interest rate. It must be multiplied by the number of periods per year to have the correct answer. On the BAII Plus, press 24 N, 500 PV, 24.50 +/- PMT, 0 FV, CPT I/Y. Then press x 12 = to see the answer. On the HP12C, press 24 n, 500 PV, 24.50 CHS PMT, 0 FV, i.Then press 12 x to see the answer. Make sure the BAII Plus has the P/Y value set to 1.
A bank savings account offers a savings rate of 3.5% per year, compounded annually. How long would it take for an investment of $710 to grow to $1,000?
Answer(s): D
If it takes n years for the growth, then 1000 = 710*(1+3.5%)^n. Solving for n gives 9.96 years.
Assume you buy a computer for $1,350 and agree to pay for it with 24 payments of $45, beginning next month. What is the size of the final payment needed at month 24 to completely pay off the computer, if the interest rate you are being charged is 16% per year, compounded monthly?
Answer(s): E
This question describes a situation often called a balloon payment. On the BAII Plus, press 24 N, 16 divide 12 = I/Y, 1350 PV, 45 +/- PMT, CPT FV. On the HP12C, press 24 n, 16 ENTER 12 divide i, 1350 PV, 45 CHS PMT, FV. The answer is shown as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.
What amount would you have in your savings account in 5 years, if it has a balance of $1,234 today and you deposit an additional $1,234 two years from today? Assume that the savings account earns 5% per year, compounded annually.
Answer(s): B
Solve this question as two compound interest problems. The first $1,234 will be in the account for 5 years. The second $1,234 will be in the account for 3 years. Find the FV of both values 5 years from today and add them together. On the BAII Plus, press 5 N, 5 I/Y, 1234 PV, 0 PMT, CPT FV, which yields $1,574.93. Then press STO 1. Then press 3 N, CPT FV, which yields $1,428.51. Press + RCL 1 = to see the answer. On the HP12C, press 5 n, 5 i, 1234 PV, 0 PMT, FV. Then press STO 1. Then press 3 n, FV. Press RCL 1 + to see the answer.Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
Share your comments for Test Prep CFA® LEVEL 1 exam with other users:
ok they re good
relevant questions
please post
q:42 there has to be a image in the question to choose what does it mean from the options
looking for cphq dumps, where can i find these for free? please and thank you.
@aarun , thanks for the information. it would be great help if you share your email
1z0-1078-23 need this dumps
i gave the microsoft azure az-500 tests and prepared from this site as it has latest mock tests available which helped me evaluate my performance and score 919/1000
i cannot see the button to go to the questions
good questions
q-6 ans-b correct. https://docs.paloaltonetworks.com/pan-os/9-1/pan-os-cli-quick-start/use-the-cli/commit-configuration-changes
very nice very nice
please help us with 1z0-1107-2 dumps
please upload the practice questions
need this dumps
preparing for this exam is overwhelming. you cannot pass without the help of these exam dumps.
new to this site but i feel it is good
the correct answer to q8 is b. explanation since the mule app has a dependency, it is necessary to include project modules and dependencies to make sure the app will run successfully on the runtime on any other machine. source code of the component that the mule app is dependent of does not need to be included in the exported jar file, because the source code is not being used while executing an app. compiled code is being used instead.
Delayed the exam until December 29th.
A and D are True
good one with explanation
This is one of the most useful study guides I have ever used.