Page 80 - CFA - Day 1 & 2 Course Notes
P. 80
LOS 6.f: Demonstrate the use of a Session Unit 2: The Time Value of Money
time line in modelling and solving
time value of money problems..
Other Applications of TVM Functions
Example: Calculating the number of periods for specific growth
How many years will it take for an investment of $1,000 to grow to $2,000 at
an annual compound rate of 14.87%?
Answer: FV = 2,000; PV = –1,000; I/Y = 14.87; CPT → N = 4.9999
It will take five years for money to double at an annual compound rate of 14.87%.
