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What annual rate of return would Jia need to earn if she deposits​ $20,000 per year into an account beginning one year from today in order to have a total of​ $1,000,000 in 30​ years?

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truonghanhduyen

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

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