Use of Financial Calculator TI BA II Plus required. If you invested a lump sum of $65 000 at eight percent in a personal account for 25 years subject to an average tax rate of 30 percent, how much would it be worth?

Question

Quizplus · Accepted Answer

The correct answer is A. $253,812.The future value of the investment can be calculated using the following formula:FV = PV * (1 + r)^nwhere:PV is the present value of the investmentr is the annual interest raten is the number of yearsIn this case, the present value of the investment is $65,000, the annual interest rate is 8%, and the number of years is 25.Plugging these values into the formula, we get:FV = $65,000 * (1 + 0.08)^25FV = $253,812Therefore, the future value of the investment is $253,812.

Use of Financial Calculator TI BA II Plus Required