I thought it was a good idea for us 2009 candidates to start sharing questions and test each other’s ability to answer them. For those who just completed the L1 in Dec., you can answer them if you want to help out. If you are burned out from studying for the past 6 months, then you shouldn’t be in the L1 forum in the first place, unless you already know you failed the exam. You can share your own questions as well. I’m just starting to read FSA right now, so don’t expect me to answer any FSA questions. I’ll take a shot at any Ethics, Quant, & Econs questions though. Question 1: A bank pays a 5% interest rate, compounded continuously. If a person deposits $10,000 in this bank for 3 years, what will the bank account be worth at the end of that time? a) $11,523 b) $11,576 c) $11,618 Question 2: A preferred stock is bought today for $35. If interest rate are 3%, what are the expected semiannual dividend payments of the stock?A preferred stock is bought today for $35. If interest rate are 3%, what are the expected semiannual dividend payments of the stock? a) $1.05 b) $0.53 c) $0.70 Question 3: Joe Jack just bought a $300,000 condominium that was 90% financed with an 8%, 15-year mortgage that requires annual payments. Calculate the annual year-end mortgage payment, and its interest and principal components for the second year of the mortgage. Payment Interest Principal Repayment a) $35,049 $24,000 $11,049 b) $31,544 $24,000 $17,544 c) $31,544 $20,804 $10,740 Question 4: The real risk-free rate is estimated to be 2% and the expected inflation rate is 2%. Estimate the nominal risk-free rate. a) 4.01% b) 4.04% c) 4.06% Question 5: The Treasury bill rate is observed to be 4%. If the expected rate of inflation is 2%, estimate the real risk-free rate. a) 1.85% b) 1.96% c) 1.79% I’ll add more once you guys answer these ones. Good Luck!

- 10000e.05*3. Don’t have a calc that can do the calculation. 2. A 3. Don’t have a calc on me 4. B 5. B