2016 AM- #6C- return calc.

CFA Level III
#1

While the solution is done on monthly basis i.e. PMT = 72,000/12 and n = 12 * 10 years

I missed the “in equal monthly installments” and focussed on 72,000 per year saving, so did the return calculation on yearly basis, i.e. PMT = 72,000 and n=12 years.

And arrived at 8.29% (vs. solution 8.09%).

Is this a complete 0 credit for me, or there is some partial credits here? Appreciate the feedback!!

#2

If I were grading your exam, I’d give you some marks. Maybe even most of them.

But certainly not all of them.

#3

If you had to come up with the 72,000 in a calculation, I would give you some marks, but I would be disappointed that you didn’t convert to a monthly amount. If you were given the 72,000, I would tend to be stingier with the marks.