Question

PLEASE ANSWER THIS TWO QUESTION THANK YOU

Your parents will retire in 27 years. They currently have $380,000 saved, and they think they will need $2,350,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. You have $36,948.61 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $280,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. years

Answer 1

1)

Function Arguments ? X RATE 1 = 27 Nper 27 Pmt 0 Pv -380000 Fv 2350000 Type o 1 = -380000 2350000 1 = = 0.069810423 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. Type is a logical value: payment at the beginning of the period = 1; payment at the end of the period = 0 or omitted. Formula result = 6.98% Help on this function D OK Cancel Cancel

Hence, Annual interest rate is 6.98%

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