CFA® Level 1: CFA® Level 1 Exam Question

Calculate the Future Value of Monthly Deposits

Prev Question Next Question

Question

If you deposit $100 a month, beginning next month, for 20 years into an account paying 8% 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.

B

On the BAII Plus, press 240 N, 8 divide 12 = I/Y, 0 PV, 100 PMT, CPT FV. On the HP12C, press 240 n, 8 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.

Prev Question Next Question