Use of Financial Calculator TI BA II Plus required. You have invested $16 000 and wonder how long it will take to accumulate $100 000 at the fairly conservative rate of 6 percent.

Question

Quizplus · Accepted Answer

Using the financial calculator TI BA II Plus, we can solve for the number of years (N) it will take to accumulate $100,000 with an initial investment of $16,000 and an interest rate of 6% per year (I/Y).

PV = -16000 (negative because it is an outgoing cash flow)
FV = 100000
I/Y = 6
PMT = 0

By solving for N (number of periods), we get approximately 31 years. Therefore, the best choice is D.

Use of Financial Calculator TI BA II Plus Required