CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

What is the future value of the following regular (ordinary, deferred) annuity?

Payment amount = $100
Payment frequency = annual, at the end of each year
Number of payments = 20
Interest rate = 8% per year
A. $4,750.00
B. $4,576.20
C. $2,160.00
Explanation: FV = 100(1.08)19 + 100(1.08)18 + 100(1.08)17 + ... + 100(1.08)1 + 100(1.08)0 = $4,576.20

User Contributed Comments 2

User Comment
sheenalim how do I compute with a calculator?
drew2009 PMT = -100 (Cash Outflow)
N= 20
I/Y= 8
CPT FV
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