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hat effective annual rate of return (EAR) would Rayne need to earn if she deposits R1,000 per month into an account beginning one month from today in order to have a total of R1,000,000 in 30 years?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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Question

What effective annual rate of return (EAR) would Rayne need to earn if she deposits R1,000 per month into an account beginning one month from today in order to have a total of R1,000,000 in 30 years?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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