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What annual rate of return would Grandma Zoe need to earn if she deposits $1,000 per month into an account beginning one month from today in order to have a total of $1,000,000 in 30 years

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Answer:  a.5.98%

Explanation:

Using the RATE function in Excel, the annual rate of return required can be found with relative ease.

Number of periods = 30 * 12 months = 360 months

Payment = $1,000

Present Value = 0

Future value = -$1,000,000

The rate given is a monthly rate of 0.4958789%

This is a year rate of = 0.4958789 * 12 = ‭5.9505468‬%

Which is closest to 5.98%

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