Question

Your parents will retire in 20 years. They currently have $250,000 saved, and they think they...

  1. Your parents will retire in 20 years. They currently have $250,000 saved, and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds?

a.

6.50%

b.

7.18%

c.

8.32%

d.

9.76%

e.

10.50%
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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