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