- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Time Value of Money in Finance
- Subject 1. Time Value of Money
CFA Practice Question
Your great aunt has promised to give you a $150,000 inheritance upon her death. If you had the money today, you could invest it at a rate of 4.5% per year. What is the present value of your inheritance if your aunt lives for 10 more years?
A. 125,784.20
B. 96,589.15
C. 102,452.02
Explanation: PV = 150,000 x (1/1.045)10 = 96,589.15
User Contributed Comments 1
| User | Comment |
|---|---|
| gmanoj | FV=150,000 PMT=0 I/Y=4.5% N=10 PV=96,589.15 |