CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

If you invested in a security promising to pay 3.75% compounded semi-annually, what would your total value per dollar invested be after 10 years?

A. 37.5
B. 1.44504
C. 1.44995
Correct Answer: C

(1+.0375/2)20 = 1.44995

User Contributed Comments 7

User Comment
gaur n = 20, i= 3.75/2=1.875, pv = (-) 100, PMT=0, FV?? ---> 144.995
zzhumanov Divide by 100 to find per dollar value
julescruis thanks guys good recap
jwebbs damn i keep forgetting its quoted as yearly so i forget to /2.
moneyguy Exactly like gaur, but:

pv = -1
cpt FV = 1.4499 (very nice :)
kingirm Why pmt=0 ?
MathLoser EAR
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