CFA® Level 1: Simple Interest Calculation

Calculating Simple Interest

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Question

If you deposit $204.50 into an account paying 3.15% per year simple interest, how much interest will be earned after 3 years?

Answers

Explanations

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A. B. C. D. E.

Explanation

The question only asks for the earned interest, not the total amount in the account. On the BAII Plus, press 204.50 x 0.0315 x 3 = to see the answer. On the

HP12C, press 204.50 ENTER 0.0315 x 3 x to see the answer.

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