标题: CFAI end of chapter questions Reading 38 [打印本页] 作者: sgupta0827 时间: 2013-4-8 20:47 标题: CFAI end of chapter questions Reading 38
Question 4 answer
When calculating overpayment for period 1 we use
$0.952 X 1.070024 = 1.01866
Where does 1.070024 come from in this equation ?作者: strikethree 时间: 2013-4-8 20:47
it is the one year interest rate for year 2
=1.065^2/1.06作者: soddy1979 时间: 2013-4-8 20:48
thanks heer,
Maybe its panic but I can’t follow the logic behind this equation.
Could you possibly help ?作者: RoastBeef 时间: 2013-4-8 20:48
So we are calculating the net position a year from now and then discounting back to now ?作者: KungFuPanda 时间: 2013-4-8 20:48
Basically it is calculating how much is paid each year and whether it is underpaid or overpaid compared to the receipts.
Now your underpayment or overpayment will grow at the annual interest rate for each year right? that is why they are back calculating that rate.作者: fishmarket 时间: 2013-4-8 20:49
