Page 20 - FINAL CFA SLIDES JUNE 2019 DAY 2
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LOS 6.f: Demonstrate the use of a time line in Session Unit 2: The Time Value of Money
modelling and solving time value of money
problems.
Example: Constructing an amortization schedule: Construct an amortization schedule to show the interest and principal
components of the end-of-year payments for a 10%, 5-year, $10,000 loan.
Answer:
• N = 5; I/Y = 10%; PV = –$10,000;
• CPT → PMT = $2,637.97
