Use of Financial Calculator TI BA II Plus required. You purchased $10 000 of a balanced fund in your RRSP 26 years ago for $14.38 per unit. It is currently worth $73.93 per unit. What was your annual rate of return?

Question

Quizplus · Accepted Answer

1. Press "2nd" and then "CLR TVM" to clear any previous calculations. 
2. Input the initial investment as a negative number: -$10,000 
3. Input the present value as a positive number: $73.93 
4. Input the number of periods in years: 26 
5. Solve for the annual rate of return by pressing "CPT" and then "IRR". 
6. The calculator will display an annual rate of return of 6.5 percent.

Therefore, the correct answer is D) 6.5 percent.

Use of Financial Calculator TI BA II Plus Required