CFA L1 Quants doubt

CFA Level I Quant
#1

Given a €1,000,000 investment for four years with a stated annual rate of 3% compounded continuously, the difference in its interest earnings compared with the same investment compounded daily is closest to:

  1. €1.
  2. €6.
  3. €455.

I have a doubt as to why we are inputting 1,000,000 as PV and not PMT? Since we are making an investment shouldnt it be inputted as PMT in the calculator

#2

PMT is used for annuity calculations (regular series of payments). This is a single deposit made now which matures in 4 years.

Standard Breddie advice: Read your calculator manual, do the examples. :+1:

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