Use of Financial Calculator TI BA II PLus required. You are investing a lump sum of $7200 with a goal of saving $200 000 total in 30 years. What annual interest rate on your investments would you need to reach your goal?

Question

Quizplus · Accepted Answer

1. Press "2nd" "CE/C" to clear the calculator.
2. Press "N" and enter 30 for the number of years.
3. Press "I/Y" to enter the annual interest rate.
4. Press "PV" and enter -7200 as it's an investment.
5. Press "FV" and enter 200,000 as the goal.
6. Press "CPT" and "I/Y" to calculate the required interest rate which is 11.7 percent.
Therefore, the answer is B, 11.7 percent.

Use of Financial Calculator TI BA II PLus Required