How Compound Interest Grows Your Savings | Exam Practice Guide

Compound Interest Calculation | CFA Level 1 Exam Prep

Prev Question Next Question

Question

If you deposit $100 a month, beginning next month, for 8 years into an account paying 6% per year, compounded monthly, how much is in your account after that last deposit?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

Explanation

On the BAII Plus, press 96 N, 6 divide 12 = I/Y, 0 PV, 100 PMT, CPT FV. On the HP12C, press 96 n, 6 ENTER 12 divide i, 0 PV, 100 PMT, FV. On the BAII Plus, make sure the value of P/Y is set to 1. Note that the answer is displayed as a negative number.