AAFM Exam CWM_LEVEL_2 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.

A1.25% per month

B1.7149% per month

C1.17149% per month

D1.117% per month

Show Suggested Answer

Suggested Answer: A

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

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Gussie

29 days 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

29 days 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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Janey

10 days ago

I'm going with C) 1.17149% per month.

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Jerry

19 days ago

I think it's A) 1.25% per month.

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Elmer

1 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

1 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

2 days ago

C) 1.17149% per month seems like the best option to me.

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Deeann

8 days ago

I'll choose D) 1.117% per month.

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Luis

10 days ago

I'm going with B) 1.7149% per month.

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Eun

20 days ago

I think it's A) 1.25% per month.

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Sheridan

1 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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Tula

3 days ago

B) 1.7149% per month

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Cherilyn

4 days ago

A) 1.25% per month

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Aliza

2 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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