CMA Study Group

who can tell me , is there present / future value table provide in transition exam? if no, how can we calculate the NPV ?

i set my exam on 30  jun. i have a little worry about this .

thank you!

Hi Wentao,

May be you can drop a short note to IMA [MemberSupport@...] to clarify this.

However, I think that the PV/FV tables should be available in all exams but not sure.

Regards

Tafazzul

If it would not been provide, you can calculate on your own.

For example 5% for 3 yrs,

1/1.05=.95 -First yr

.95/1.05=.907- second yr

.907/1.05=.863- third yr

and so on

If you can buy an HP 10bII calculator and learn to use the CFj key, you won't need to use PV/FV tables..

This calculator and the Texas I one are the 2 you can take in the exam..

Calculator.

I personnnaly recommand to use one of the 2 financial calculator allowed.

See https://www.imanet.org/certification_taking_calculators.asp

The TI is cheaper, the HP cost like 40 $ on amazon. I like the HP because then you can use it at work and upgarde to HP12 or 17 (same logical).

 You will save a lot of time. But you must be very very  familiar with it . Do exercice with it and the tables.. the results will be slightly different, its a normal rounding issue.

Jacques

Having taken and passed the Part 3 exam today, I would highly recommend one of the financial calculators. 

I bought a TI30 BA II plus today on the way to the test and spent about 15 minutes trying it out before my appointment. The time was well worth it. You can test out your calculations versus the time value table to make sure you are doing it right. Why would want to use a 4 or 6 function calculator when you can use of of these? I mostly used it for FV, PV, and IRR. It is a time saving versus writing out the formulas, and another thing that helped me was that it will saves the values for these problems until you clear it. 

For example, if you had a problem that required you to calculate different NPV at different rates to compare investments, this saves a lot of time.

An investment returns 2,500 for 5 years. And you need to know what is the NPV is at 6%, 8%, and 10%.

You would enter: (I'm using the brackets to denote the calculator [key] )

0 [ FV ]

2500 [ PMT ]

5 [ N ]

6 [ I/Y ]

And once you calculated that [compute] [PV] ;  you can just repeat the above step replacing the 6 with an the other numbers to quickly calculate their values.

I wish that I bought one of these to use when I was studying for the exam. I think it could have helped me finish the test (I skipped a few that had a lot of calculations).

Info on the calculator from Amazon:

"The more hard-core worksheet mode includes tables for amortization, bond, depreciation, and compound interest. If you're not familiar with such calculations, the very helpful user's manual will guide you through the process. All previous worksheet values are stored in memory, so you don't have to retype all the bond maturity or cash flow analysis figures." It says it can figure out uneven cash flows, depreciation schedules, uneven cash flow analysis, and advanced statistics. I haven't used an HP 10bII, so I can't say which is better.