On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund is expected to be worth $400,000 on January 1, 2010, what annual rate of interest is being earned on this fund?

On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund is expected to be worth $400,000 on January 1, 2010, what annual rate of interest is being earned on this fund?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10E: Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each...

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