CFA Level 1: Compound Interest Calculator

Compound Interest Calculator for CFA Level 1 Exam

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Question

If you deposit $5,000 into an account paying 9% per year, compounded monthly, how much do you have in the account in 10 years?

Answers

Explanations

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Explanation

On the BAII Plus, press 120 N, 9 divide 12 = I/Y, 5000 PV, 0 PMT, CPT FV. On the HP12C, press 120 n, 9 ENTER 12 divide i, 5000 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.