CFA Level 1: CFA Level 1 Exam Question

John's Great-Grandfather's Account Value Calculation

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Question

John's great-grandfather left him $100 when he died 100 years ago in an account paying 5% per year, compounded annually. How much would the account hold for John now?

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Explanations

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A. B. C. D. E.

B

On the BAII Plus, press 100 N, 5 I/Y, 100 PV, 0 PMT, CPT FV. On the HP12C, press 100 n, 5 i, 100 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.