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Accrued Equivalent

In CAFI Mock 2 Q 17, I do not know where is the below equation for the AE rate stated in teh curiculum, because the one I have seen is different.

The one stated in the curiculum: r(1 – TAE) = RAE 

Q. Using Exhibit 2, the accrual equivalent after tax annual return that Buylak calculates for Kasey’s investment portfolio is closest to:

  1. 7.35%.
  2. 7.45%.
  3. 7.58%

The Mock’s equation: Accrual Equivalent Annual Return % = 100% × [(Ending Value/Beginning Value)1/12 − 1]

Failure will never overtake me if my determination to succeed is strong enough!

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This is no longer in the 2019 curriculum. 

I could not find it in the errata, how can I find about other things that are removed.

Failure will never overtake me if my determination to succeed is strong enough!

I think that section is marked optional in the text. Anything marked optional won’t be tested. Just follow the LOS statements when in doubt. 

There’s also a relevancy guide by IFT that’s been posted a few times. You can just google it and find the link.