Explain inputs in Morning section

Hi All,

I am just wondering if it is mandatory in the exam day to explain the meaning of the different inputs when you are asked to calculate something. I mean for example

Formula of FVIFt= (1+r(1-t))n


r= pretax return

t=accrual taxes

n=time of investment

or just to write down the formula and substitute it with the inputs in the text

I think it would be a waste of time as long as CFA curriculum notation is used. What do U think guys ?


Not required. In fact, you don’t even need to write out the formula if you don’t want to. Some recommend it for the possibility of partial credit, but I didn’t. I’d say go with what makes you comfortable within what is a time crunch that should not be taken lightly. In the end, if a question asks you to “Calculate” with “Show your Calculations”, you can simply write out the inputs in the formula and state your answer with an equals sign. I usually circled the final answer when it made sense to do so to make sure my final result was clear to the grader.

Good luck!

Watch out to do not forget add currency mark when applicable (eg. $, USD or what else).