CFA Level 1: Account Balance Calculation

Account Balance Calculation

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Question

If you deposit $300 a month, beginning next month, for 10 years into an account paying 8% per year, compounded monthly, how much is in your account after that last deposit?

Answers

Explanations

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Explanation

On the BAII Plus, press 120 N, 8 divide 12 = I/Y, 0 PV, 300 PMT, CPT FV. On the HP12C, press 120 n, 8 ENTER 12 divide i, 0 PV, 300 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.