CFA Level 1: Calculating Future Value

Calculating Future Value

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Question

If you deposit $250 a year, beginning next year, for 30 years into an account paying 6% per year, compounded annually, how much is in your account after that last deposit?

Answers

Explanations

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Explanation

On the BAII Plus, press 30 N, 6 I/Y, 0 PV, 250 PMT, CPT FV. On the HP12C, press 30 n, 6 i, 0 PV, 250 PMT, FV. Note that the answer is displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.