P/Y = 1 C/Y = 2 6 N 500,000 PV -800,000 FV CPT I (see if it matches choice 3 ). If not, change C/Y to 365 and CPT I again to see if it matches choice 2. If no match, change C/Y to 525,600 and CPT I to see if it matches choice 1.

P/Y = 1 C/Y = 1 6 N 500,000 PV -800,000 FV CPT I. This will give you the effective annual interest rate, which you will take to the ICONV worksheet. Set EFF as the annual effective rate. Change compounding frequency to 2, 365, or 525,600 and CPT NOM to compare to your answer choices.

I would put in all the key steps, but my BAII just died on me.

Note that this type of question is incredibly unlikely on the real exam. The only way you can answer it is to do a calculation for each of the answer choices: three separate calculations. That’s not how they set up exam questions.

That said, it’s good practice. But unrealistic for an exam question.