- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. The Time Value of Money
- Subject 3. The Future Value and Present Value of a Single Cash Flow

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**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

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**User Contributed Comments**
1

User |
Comment |
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gmanoj |
FV=150,000 PMT=0 I/Y=4.5% N=10 PV=96,589.15 |