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Basic Question 21 of 27

You are trying to accumulate $5,000 in a savings account at the end of 4 years. You plan to make yearly deposits of $1,061.63 at the end of each year. What interest rate must the savings account pay in order for you to accumulate $5,000?

A. 10%
B. 11%
C. 12%

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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.