Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 18 of 27
You are trying to accumulate $5,000 in a savings account. The savings account pays 4% per year and you plan to make yearly deposits of $416.45 at the end of each year. How many yearly deposits must you make?
B. 12
C. 15
A. 10
B. 12
C. 15
User Contributed Comments 7
| User | Comment |
|---|---|
| irutschka | My calculator somehow gives 8 as an answer. Anybody has the same? |
| irutschka | Sorry, everything is fine with 10 ;)) |
| cptp | I got 9.68, hence 10 is correct. |
| airborne | the answer is 10.0001 everything is OK |
| Bevin | Don't forget to put END in your calculator. I forgot the first time and got 9.68. Once I changed, I got 10. |
| swinter44 | If you're having trouble coming up with the correct answer, check to ensure that you don't have P/Y set to a number other than 1 from a previous question. |
| uhupong | Good reminding Bevin. Those who set cal with BEG and got 9.68 just got lucky this time. |
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.