I have a question about practice problem 12 of the latest CFA level 1 study material for Quantitative:
“A client requires $100,000 one year from now. If the stated annual rate is 2.5% compounded weekly, the deposit needed today is closest to:”
Writing the equation out gives the right result, however, when I input it to my BA ii plus, it gives the wrong result.
N = 52
I/Y = 0.025/52
FV = 100,000
(Compute) PV = 99,975 ?
The right answer is $97,532. My setting is correct, P/Y and C/Y is 1, END mode.