How did they calculate $1,827,000 for goal 1?
BGN mode
N = 20
PMT = 120,000
I/Y = ???
Calculate PV
If I plug in $1,827,000 to PV to calculate I/Y, I get 3.078%
How did they calculate $1,827,000 for goal 1?
BGN mode
N = 20
PMT = 120,000
I/Y = ???
Calculate PV
If I plug in $1,827,000 to PV to calculate I/Y, I get 3.078%
please respond.
what CFA mock 24 ? you mean question 24 ?
I don’t understand the solution logic, but what I did:
Goal 1: PV of annuity due. PMT = 120K, n=20, fv=0 i/y=5.7-2.5> ----- PV = 1,808,814.78
Goal 2: PV of donation. FV = 1.5m n = 10 i/y = 3.6 ------ PV = 1,053,158.42
Add to PVs together = 2,861,973.20 Goal 1 PV / total = 63% in CZ Goal 2 PV / total = 37% in BY
I did (1.057/1.025 -1 ) to get the I/Y.
But my number gets PV of 1,820,738
this is fine for multiple choice question, but not for AM essay.
yes. question 24.