Hot to get answer using BA 2 Plus calculator

CFA Level I
#1

A bank deposit is opened for 9 months

Deposit amount is $ 100

Interest is compounded once in a quarter (3 months)

Annual interest rate is = 12%

What is the future value of $100 deposit ?

Manual answer

100 x 1.03 = 103

103 x 1.03 = 106.09

106 x 1.03 = 109.2727

How to get this answer 0f 109.2727 using BA 2 Plus calculator ?

#2

P/Y 1 C/Y 4
2ND CLR TVM
0.75 N 12 I PV 100 CPT FV -109.27270

Or you can set C/Y as 1, N as 3 and I as 3 for those who want to deal strictly on a quarterly basis. You should get the same answer as above

Read the manual, do the examples. :+1:

#3

Thank you