Simple Interest Calculator | Calculate Balance After 8 Months | CFA Level 1 Exam Prep

Calculate Balance After 8 Months

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Question

If you deposit $123 into an account paying 6% per year simple interest, what is the balance in your account 8 months later?

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Explanations

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A. B. C. D. E.

D

Calculate the simple interest earned and add it to the original deposit. On the BAII Plus, press 123 x 0.06 x 8 divide 12 = + 123 = to see the answer. On the

HP12C, press 123 ENTER 0.06 x 8 x 12 divide 123 + to see the answer.