Use of Financial Calculator TI BA II Plus required. The TSX index was valued at 1000 in 1984. Today (2008)it is valued at 13 144. What has been the annual return of the TSX over this time? (Assume that dates of valuation are the same.)

Question

Quizplus · Accepted Answer

Using the financial calculator TI BA II Plus, we can calculate the annual return of the TSX over this period by using the following formula: 
Annual return = [(Ending value / Beginning value)^(1/number of years)] - 1 
Plugging in the values, we get:
Annual return = [(13,144 / 1,000)^(1/24)] -1 
Annual return = 0.113 -> 11.3%
Thus, the correct answer is option C, 11.3 percent.

Use of Financial Calculator TI BA II Plus Required