CFA® Level 1 Exam Question: Monthly Deposit for $500,000 in 30 Years

Calculate the Monthly Deposit for $500,000 in 30 Years

Prev Question Next Question

Question

What monthly deposit would you need to make, beginning one month from today, into an account paying 11% per year, compounded monthly, in order to have

$500,000 in 30 years?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

B

On the BAII Plus, press 360 N, 11 divide 12 = I/Y, 0 PV, 500000 FV, CPT PMT. On the HP12C, press 360 n, 11 ENTER 12 divide i, 0 PV, 500000 FV, PMT. Note that the answer will be displayed as a negative number. Make sure that the BAII Plus has the value of P/Y set to 1.