Reading 12 - CFAI EOC - Question 17
I am trying to understand the calculations involved in the PV calcs for Capital needs. In the question it gives us family living expenses and states that it will decline by 30,000 per year. However, in the answer this detail in not included in teh PV or mentioned in any way. Am i supposed to somehow assume that it is already included in Olivia’s and the children’s living expenses? If anyone could explain the logic here it would be greatly appreciated.
These questions are included on the webpage as a supplement since they weren’t included in the books themselves.
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