Your retirement account has a current balance of $56,500. What interest rate would you need to be earned in order to accumulate a total of $1,500,000 in 40 years, by adding $6,700 annually? Suppose deposits are made at the beginning of the year. Make sure to show your work.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section: Chapter Questions
Problem 2AA
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Your retirement account has a current balance of $56,500. What interest rate would you need to be earned in order to accumulate a total of $1,500,000 in 40 years, by adding $6,700 annually? Suppose deposits are made at the beginning of the year. Make sure to show your work.

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