CFAi EOC question, b2, p153. I just can’t figure out how they get the return of 4.427% (7.38% pretax). I have the: Current portfolio value: 1235000 Annual income shortfall: 26000 Required portfolio value after 18 years: 2000000 Now how do I get to the 4.427% required return?
…and all of a sudden the I/Y on my calc throws up the right number!! Pls Ignore. Thx!
Hi mate, mind the signs… N = 18 PV= 1,235,000 PMT= -26,000 FV= -2,000,000 1/Y=??? --> 4.427%