CFA Level 1 Exam: Compound Interest Calculation

Calculate Compound Interest with 22 Deposits of $33

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Question

If you make 22 deposits of $33 with the first deposit occurring next month, how much do you have immediately after the last deposit, if the account earns 4.44% per year, compounded annually?

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E

On the BAII Plus, press 22 N, 4.44 I/Y, 0 PV, 33 PMT, CPT FV. On the HP12C, press 22 n, 4.44 i, 0 PV, 33 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.