- 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 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
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 |