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Frequency of Compounding—Future Value

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    • Avatar of Carolina.mtzCarolina.mtz
      Participant
        • CFA Level 1
        22 Jun 2021 at 2:03 am
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        Does anybody know how to type this in the calculator?

        FVN = PVersN = 100,000e0.02×4 = 108,328.71

        I keep getting a different result.

        A client keeps USD 100,000 in a bank account that pays a stated annual interest rate of 2.00%. Assuming no additions or withdrawals, how much will the client have in the account at the end of four years if the interest compounds continuously?

      • Avatar of Zee TanZee Tan
        Keymaster
          • CFA Charterholder
          22 Jun 2021 at 9:26 am
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          I get this:

          USD 100,000 × 1.024 = USD 100,000 × 1.08243216 = USD 108,243

          The keystrokes I use are:

          100000 x ( 1.02 yx 4 ) =

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