CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

A parent wants to save $50,000 for her daughter's education. She needs this amount in six years. How much does she need to begin saving a year from now, every year, if the savings can be invested at 5%?
A. 7,351
B. 7,001
C. 7,937
Explanation: Using a financial calculator: FV = 50,000; N = 6; I/Y = 5; CPT PMT = 7,351

User Contributed Comments 3

User Comment
chcarnes Ah, I discounted it back one year to get 7001 as she started saving it a year from now.
nmech1984 For some reason, my result is 7362...
Aalhaddad2 my result is 7827.
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