Your retirement account has a current balance of $50,000.What interest rate would need to be earned in order to accumulate a total of $1,000,000 in 30 years, by adding $6,000 annually?
A)5.02 percent
B)7.24 percent
C)9.80 percent
D)10.07 percent

Question

Quizplus · Accepted Answer

To find the interest rate needed, we use the future value of an annuity formula combined with the future value of a lump sum. After calculations, the required interest rate is approximately 7.24 percent.

Your Retirement Account Has a Current Balance of $50,000