What annual rate of return would Jia need to earn if she deposits $20,000 per year into an account beginning one year from toda

Question

4 years ago

9

y in order to have a total of $1,000,000 in 30 years?

1 answer:

Nimfa-mama [501] · Answer 1 · 2021-12-25T14:55:32+03:00

Answer:

3.12%

Explanation:

We use formula in excel to calculate annual rate of return

Rate = (Nper,PMT,,FV,1)

Nper (number of payments): 30

PMT (payment made every period) : -$20,000

FV (future value of investment): $1,000,000

type 1 for payment beginning of period

Then rate = (30,-20000,,1000000,1)= 3.12%

Please see excel attached for the calculation

What annual rate of return would Jia need to earn if she deposits​ $20,000 per year into an account beginning one year from toda