When Using a Financial Calculator, Which of the Following Is

question 31

Multiple Choice

When using a financial calculator, which of the following is a correct way to find the future value of $200 deposited today in an account for four years paying annual interest of 2% compounded quarterly?

• A) N=16, i=.005, PV=200, PMT=0, solve for FV
• B) N=4, i=.5, PV=200, PMT=0, solve for FV
• C) N=16, i=.5, PV=-200, PMT=0, solve for FV
• D) N=16, i=.03, FV=-200, PMT=0, solve for PV

---

Definitions:

Trading

The act of buying, selling, or exchanging financial assets in markets with the goal of making profits from price movements.

Current Yield

Current Yield is the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.

Trading

The action or activity of buying, selling, or exchanging goods, services, or financial instruments.