- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 6. The Time Value of Money
- Subject 3. The Future Value and Present Value of a Single Cash Flow

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**CFA Practice Question**

You have received $125 today. You will invest the money at a rate of 6% per year. How much will your investment have increased to by the end of 7 years?

A. 187.95

B. 185.97

C. 167.51

**Explanation:**FV = (125)(1.06)

^{7}= 187.95

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