CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

If you are given a present value, the length of time the money is to be invested, compounding interval, and the future value of the investment, you can solve for the interest rate that was earned on the investment. True or False?
Correct Answer: True

User Contributed Comments 5

User Comment
0is4eva PV * (1+r/m)^N = FV
(1+r/m)^N = FV/PV
(1+r/m) = (FV/PV)^(1/N)
r = m * ( (FV/PV)^(1/N) - 1 )
jlevee Just look at the TVM buttons on your calculator. If you have all but one you can do it...
sunxx320 I think 0is4eva's formula is not right. FV=PV*(1+r/m)^(N*m), so r=m*((FV/PV)^(1/Nm)-1).
khalifa92 the door heaven widely open yet you guys knocking to hells' door
alichattoo Technically you do not have the payment
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