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Basic Question 11 of 27
What is the future value of the following regular (ordinary, deferred) annuity?
Payment frequency = annual, at the end of each year
Number of payments = 7
Interest rate = 4% per year
B. $2,014.07
C. $2,590.80
Payment amount = $255
Payment frequency = annual, at the end of each year
Number of payments = 7
Interest rate = 4% per year
A. $1,856.40
B. $2,014.07
C. $2,590.80
User Contributed Comments 3
| User | Comment |
|---|---|
| Indira | Using BA II Set the period to END (as this is a regular annuity) -255 PMT, 7 N, 4 I/Y,CPT FV = 2,014.07 |
| hpersey | Indira, I get 3409.43 using that method, |
| hpersey | Disregard that, I hadn't cleared my TVM worksheet.. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate and interpret the present value(PV) of fixed-income and equity instruments based on expected future cash flows
calculate and interpret the implied return of fixed-income instruments and required return and implied growth of equity instruments given the present value (PV) and cash flows
CFA® 2024 Level I Curriculum, Volume 1, Module 2.