Provide correct answer this financial accounting question Thompson Family plans to retire in 22 years. They currently have$420,000 saved and estimate they will need $1,000,000 atretirement. What annual interest rate must they earn to reach theirgoal, assuming they do not contribute any additional funds?

We will use the Excel RATE function to determine the annual interest rate needed to grow from…

Answered: Thompson Family plans to retire in 22…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 43P

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Thompson Family plans to retire in 22 years. They currently have $420,000 saved and estimate they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they do not contribute any additional funds?