- 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**

At what rate of interest must I invest a sum of money if I want to double my investment in 14 years time and if the interest is compounded annually?

A. 0.05076%

B. 5.08%

C. 0.05%

**Explanation:**Using Texas Instruments BA II Plus:

1 ± PV: PV = -1.00

2 FV: FV = 2.00

14 N: N = 14.00

CPT I/Y: I/Y = 5.08

Using Hewlett Packard hp 12 C:

f CLEAR FIN: 0.000000000

f CLEAR REG: 0.000000000

14 n: 14.00000000

5 CHS PV: -5.00000000

15 FV: 10.00000000

i: 5.07566387

Note: You can put in any value for PV as long as you put in twice this value for FV.

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**User Contributed Comments**
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User |
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Sunny31 |
Rule 72 |