- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. The Time Value of Money
- Subject 4. The Future Value and Present Value of a Series of Equal Cash Flows (Ordinary Annuities, Annuity Dues, and Perpetuities)

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**CFA Practice Question**

You have a nest egg of $750. In order for your money to grow to $1,343.10, it must be invested at 6% for how many years?

A. 11

B. 10

C. 9

**Explanation:**Years = Log(1343.10/750)/Log(1.06) = 10

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**User Contributed Comments**
6

User |
Comment |
---|---|

chamad |
BAII : 1343.1FV 750PV 6I CPT N=10 |

Criticull |
i got an error 5 when i tried that chamad...I'll check the manual. |

jpducros |
error 5 is linked to a sign error...you have to enter either PV or FV with an opposite sign. |

shiva5555 |
FV should be negative |

thekobe |
think it this way: we need a factor of 1.79 yrs since 750(1.06)^n=1343.1, so simply evaluate the three options in order to identify the right one, 1.06^10=1.79 |

asalonga7 |
BAII Plus FV 1343.10 PV -750 PMT 0 I/Y 6 CPT N = 9.99 = 10 |