- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Time Value of Money in Finance
- Subject 2. Fixed Income Instruments and the Time Value of Money
CFA Practice Question
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?
B. 11%
C. 12%
A. 10%
B. 11%
C. 12%
Correct Answer: B
By calculator: PMT = -$1,061.63; n = 4; FV = $5,000.00; CPT i = 11%
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