Question

Derek can deposit $11,000 on each birthday beginning with his 26th and ending with his 65th. What will the rate on the retirement account need to be for him to have $3.000.000 in it when he retires on his 65th birthday? Submit not submitted Attempts Remaining: Infinity Answer format: Percentage Round to: 4 decimal places (Example: 9.2434% % sign required Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Derek can deposit $13,535.00 on each birthday beginning with his 27.00th and ending with his 68.00th. What will the rate on the retirement account need to be for him to have $3,280.776.00 in it when he retires ? unaSEED Submit not_submitted Attempts Remaining: Infinity Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Answer 1

1.

The rate on retirement is calculated below:

3000000 11000 1 Future value 2 Annual deposit 3 Number of payments 4 Rate 40 =RATE(B3,-B2,0,B1,0)

Α B 30,00,000.00 11,000 1 Future value 2 Annual deposit 3 Number of payments 4 Rate 40 8.1950%!

Rate on retirement is 0.081950.

2.

The rate on retirement is calculated below:

3280776 13535 1 Future value 2 Annual deposit 3 Number of payments 4 Rate 42 =RATE(B3,-B2,0,B1,0)

Α 1 Future value 2 Annual deposit 3 Number of payments 4 Rate 32,80,776.00 13,535 42 7.1811%

Rate on retirement is 0.071811.