Use of Financial Calculator TI BA II Plus Required

question 60

Multiple Choice

Use of Financial Calculator TI BA II Plus required. It is now 2030 and you have saved $250 000 since you started saving in 2007. During the same period inflation averaged 3 percent. What would your $250 000 be worth in 2007 dollars?

• A)$493 397
• B)$126 673
• C)$121 891
• D)$236 047

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Definitions:

Deductible Contribution

An eligible contribution to a qualified plan or account that reduces taxable income.

Coverdell Education Savings Account

A savings account that allows money to grow tax-free when the funds are used for education expenses.

AGI

Adjusted Gross Income, which is gross income minus adjustments, serving as the basis for calculating taxable income.

Annuity Contract

A financial product sold by an insurance company that provides guaranteed income over a period of time for a flat or periodic payment.