How to Reach $500,000 in 30 Years with a 9% Annual Interest Rate - CFA Level 1 Exam Preparation

Calculate Single Deposit for $500,000 in 30 Years with 9% Annual Interest - CFA Level 1 Exam

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Question

What single deposit could you make today in order to have $500,000 in 30 years, assuming it earns interest at 9% per year, compounded monthly?

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A. B. C. D. E.

D

On the BAII Plus, press 360 N, 9 divide 12 = I/Y, 0 PMT, 500000 FV, CPT PV. On the HP12C, press 360 n, 9 ENTER 12 divide i, 0 PMT, 500000 FV, PV. Note that the answer is displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.

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