hey can somebody send me the books as well at
thnx in advance
hello
the videos for CFA L 1 prep are available at 2011 CFA Video Lectures - Irfanullah Financial Training
Has someone tried this?
Here is the question
http://i47.tinypic.com/2i71url.jpg
Has someone attempted the TVM questions.
CFA Curriculum > TVM > Page 296 > Ques 18
The ques mentions cost payable at the beginning of the year. However, in the solution, this beginning concept is not taken into consideration. Something wrong somewhere !
Thoughts, please?
Has anyone applied to/completed the pristine or finstructor classroom coaching in New Delhi? And if yes, was it good?
Has someone tried this?
Here is the question
http://i47.tinypic.com/2i71url.jpg
i dun have the curricullum as i havnt applied yet
is the answer 13416.34 ??
Is the SCHWESSER notes sufficient for L1 ??? Or something else is also required ??
Hey gyz anyone seeing vedios??????
How are they helping you???
Isn't just reading from schweser good enough???
Plz reply
The answer is 2881.73
i dun have the curricullum as i havnt applied yet
is the answer 13416.34 ??
Just think logically, if you are paying 13,416 for 17yrs it equal to 2,28,072 without even considering TVM. You just need 20,000*4= 80,000; you can avoid these type of answers by just thinking logically.
I also got the answer as 2881.73. However, the answer given in the curriculum is 2744.5 - which I do not agree with !
Yes, 2881.73 is the correct answer.
Then, is CFAI wrong?
ExpertAnushka SaysYes, 2881.73 is the correct answer.
Even if I bring the calculations to the end of year format, I'm still getting the same answer as 2881.73.
I have asked a senior. Let's wait for their explanation on this.
The discrepancy is not due to beginning or end of year flows - rather the interpretation of the ques to draw the timeline. Exactly the part where it mentions that the 20000 payments are payable at the beginning of the year. It is not clear if this is beginning of the "timeline" year or "academic" year (which may be the end of the "timeline" year also).
FeRMioN SaysThe discrepancy is not due to beginning or end of year flows - rather the interpretation of the ques to draw the timeline. Exactly the part where it mentions that the 20000 payments are payable at the beginning of the year. It is not clear if this is beginning of the "timeline" year or "academic" year (which may be the end of the "timeline" year also).
the answer in the cfai books is right. its a two step problem
n=4, i/y=5, FV=0, PMT=20000 CPT-> PV= 70,919.01
n=17, i/y=5 FV=70,919.01, PV=0 CPT-> PMT=2774.50.
The pymt of the tution fees occurs at the start of the 18th,19th, 20th, 21st year. we calculate the PV of these payments at the start of 17th year as step 1.(end mode)
Then we take this amount as the FV of the 17 installments, thus we come to the above answer. (end mode)
The issue is not solving this problem, but, like I mentioned, interpretation of the english.
If you draw a timeline, you would see that the solution that you have given here is wrong.
You have calculated the PV of the tution fees at the begin of yr 17. Now the FV of the 17 installments is accumulated at the "end" of yr 17 - So how can you equate both.
For this you need to bring both the payments to one time instance - thus giving a wrong answer.
Anyways, I have given it a thought and also discussed with some CFAs...
Solution - We are expected to use "common sense" that begin of year means "begin of academic year" not "begin of timeline year" - this solves the problem.
the answer in the cfai books is right. its a two step problem
n=4, i/y=5, FV=0, PMT=20000 CPT-> PV= 70,919.01
n=17, i/y=5 FV=70,919.01, PV=0 CPT-> PMT=2774.50.
The pymt of the tution fees occurs at the start of the 18th,19th, 20th, 21st year. we calculate the PV of these payments at the start of 17th year as step 1.(end mode)
Then we take this amount as the FV of the 17 installments, thus we come to the above answer. (end mode)
The issue is not solving this problem, but, like I mentioned, interpretation of the english.
If you draw a timeline, you would see that the solution that you have given here is wrong.
You have calculated the PV of the tution fees at the begin of yr 17. Now the FV of the 17 installments is accumulated at the "end" of yr 17 - So how can you equate both.
For this you need to bring both the payments to one time instance - thus giving a wrong answer.
Anyways, I have given it a thought and also discussed with some CFAs...
Solution - We are expected to use "common sense" that begin of year means "begin of academic year" not "begin of timeline year" - this solves the problem.
Hi,
One more thing, the PV in step-1 is wrong. You are discounting Rs. 20000 required at the beginning of year-18 by 5% and bringing it to the end of Year-17.
The corrected PV for step-1 is: 20000 + 20000/(1.05) + 20000/ (1.05)^2 + 20000/(1.05)^3 = 74,464.96.
Now if you input this FV in your step-2, the answer comes out to be Rs. 2881.73.
I second this solution by Anushka.
Guys any idea why BGN mode is leading to correct answer in step - 1???
hi
for the december 2012 exam can the june 2012 cfa material be used for studying?