Use of Financial Calculator TI BA II Plus required. Danielle is 40 years old and has saved $150 000 in her RRSP. Her goal was to reach $1 000 000 by the time she turns 60. How much more will she have to save each year if she maintains a nine percent return on her investments?

Question

Quizplus · Accepted Answer

The correct answer is A. $3115. To calculate the amount Danielle needs to save each year, we can use the TVM (Time Value of Money) functions on the TI BA II Plus calculator. 1. Enter the following values into the calculator:- N = 20 (number of years until Danielle turns 60)- I/Y = 9 (annual interest rate)- PV = -150000 (present value of Danielle's RRSP savings)- FV = 1000000 (future value of Danielle's RRSP savings)2. Press the "CPT" button to calculate the PMT (payment). The calculator will display $3115.04.Therefore, Danielle needs to save an additional $3115 each year to reach her goal of $1,000,000 by the time she turns 60.

Use of Financial Calculator TI BA II Plus Required