CFA® Level 1: Compound Interest Calculator

Compound Interest Calculator

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Question

If you deposit $6,000 into an account paying 4% per year, compounded semiannually, how much do you have in the account in 20 years?

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Explanations

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A

On the BAII Plus, press 40 N, 4 divide 2 = I/Y, 6000 PV, 0 PMT, CPT FV. On the HP12C, press 40 n, 4 ENTER 2 divide i, 6000 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.