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AAFM CWM_LEVEL_2 Exam - Topic 4 Question 91 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 91
Topic #: 4
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Rate of 15% p.a compounded annually will be equal to ---------------- % per month.

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Suggested Answer: A

by Marilynn at Sep 13, 2024, 04:09 PM

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Glory
5 months ago
I thought it would be lower, but I guess B is correct!
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Ronny
5 months ago
Totally agree with B, makes sense to me!
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Johnna
5 months ago
Wait, how does 15% annual equal 1.7149% monthly? Seems off.
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Andra
6 months ago
Definitely B, that’s the right calculation!
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Brinda
6 months ago
It's actually about 1.17149% per month!
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Carey
6 months ago
I believe the formula involves taking the annual rate and using some kind of adjustment for compounding. I think 1.7149% sounds familiar from our practice sessions.
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Carri
6 months ago
I recall that to find the monthly rate, we might need to divide the annual rate by 12, but that doesn't always give the correct compounded rate.
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Iluminada
6 months ago
I think we practiced a similar question where we had to convert an annual interest rate. I feel like 1.25% could be the right answer, but I’m not completely confident.
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Monroe
7 months ago
I remember something about converting annual rates to monthly rates, but I'm not sure how to do it exactly.
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Ardella
7 months ago
Okay, I think I've got this. If the annual rate is 15% compounded annually, then the monthly rate would be (1 + 0.15)^(1/12) - 1, which comes out to 1.17149% per month. I'm pretty confident that's the right answer.
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Audrie
7 months ago
Hmm, I'm a bit unsure about this one. I know it has something to do with converting an annual rate to a monthly rate, but I'm not sure of the exact formula. I'll need to think this through carefully.
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Jamey
7 months ago
This looks like a straightforward compound interest calculation. I'll need to convert the annual rate to a monthly rate, so I'll start by dividing 15% by 12 to get the monthly equivalent.
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Britt
7 months ago
Wait, I'm confused. Is it really just a matter of dividing the annual rate by 12? That doesn't seem quite right to me. I'll need to double-check my understanding of compound interest before answering this.
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Omega
7 months ago
Okay, I remember learning about this in class. SMTP is the protocol used for sending email messages between servers. I'm feeling good about selecting that option.
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Gussie
11 months ago
Oof, math questions always make my brain hurt. I'm just going to close my eyes and point to an answer. Maybe I'll get lucky and it'll be the right one! *Laughs* Just kidding, I'll give it a real shot. I think I'll go with D) 1.117% per month.
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Elli
11 months ago
Okay, let's see... 15% per year, compounded annually. That's got to be B) 1.7149% per month. I'm feeling pretty confident about this one!
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Kayleigh
10 months ago
I agree with you, B) 1.7149% per month seems right.
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Janey
10 months ago
I'm going with C) 1.17149% per month.
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Jerry
11 months ago
I think it's A) 1.25% per month.
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Elmer
11 months ago
Hmm, I'm stumped. I've been staring at this question for way too long. I guess I'll just go with A) 1.25% per month and hope for the best. At least it's a nice round number, right?
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Melina
11 months ago
I'm going with C) 1.17149% per month. It just feels right, you know? I'm sure I'll regret this choice later, but hey, that's the life of a test-taker!
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Linwood
10 months ago
C) 1.17149% per month seems like the best option to me.
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Deeann
10 months ago
I'll choose D) 1.117% per month.
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Luis
10 months ago
I'm going with B) 1.7149% per month.
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Eun
11 months ago
I think it's A) 1.25% per month.
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Sheridan
12 months ago
D) 1.117% per month sounds good to me. I'm not too confident in my math skills, but that answer seems the most reasonable based on the annual rate of 15%.
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Freida
10 months ago
D) 1.117% per month sounds good to me.
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Lynelle
10 months ago
C) 1.17149% per month
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Tula
10 months ago
B) 1.7149% per month
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Cherilyn
10 months ago
A) 1.25% per month
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Aliza
12 months ago
I think the answer is B) 1.7149% per month. The formula for converting annual interest rate to monthly rate is (1 + r/n)^n - 1, where r is the annual rate and n is the number of periods per year. Plugging in the numbers, we get (1 + 0.15/1)^1 - 1 = 0.01715, or 1.7149% per month.
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Irving
10 months ago
Plugging in the numbers, we get (1 + 0.15/1)^1 - 1 = 0.01715, or 1.7149% per month.
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Aretha
11 months ago
Yes, you are correct. The formula for converting annual interest rate to monthly rate is (1 + r/n)^n - 1.
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Catarina
11 months ago
Yes, plugging in the numbers gives us 1.7149% per month.
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Marci
11 months ago
That makes sense, the formula for converting annual rate to monthly rate is helpful.
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Josphine
11 months ago
I think the answer is B) 1.7149% per month.
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Gilma
12 months ago
I think the answer is B) 1.7149% per month.
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Sheron
1 year ago
I'm not sure, but I think it's B) 1.7149% per month. I need to double check my calculations.
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Irma
1 year ago
I agree with Kirk, because 15% divided by 12 months is around 1.25%.
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Kirk
1 year ago
I think it's A) 1.25% per month.
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