CFA Level 1: Compound Interest Calculation

Compound Interest Calculation

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Question

If you deposit $10,000 into an account paying 6% per year, compounded semiannually, how much do you have in the account in 8 years?

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Explanations

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A. B. C. D. E.

B

On the BAII Plus, press 16 N, 6 divide 2 = I/Y, 10000 PV, 0 PMT, CPT FV. On the HP12C, press 16 n, 6 ENTER 2 divide i, 10000 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.