An engineer deposits $550 each month into a retirement account. After 30 years, the balance in the account is $1.8 million. Determine the effective annual rate of return for this account. Express your answer in % (not decimal) to the nearest 0.1%.

An engineer deposits $550 each month into a retirement account. After 30 years, the balance in the account is $1.8 million. Determine the effective annual rate of return for this account. Express your answer in % (not decimal) to the nearest 0.1%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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Question

An engineer deposits $550 each month into a retirement account. After 30 years, the balance
in the account is $1.8 million. Determine the effective annual rate of return for this account.
Express your answer in % (not decimal) to the nearest 0.1%.

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