Rate of Return Required
Contents
Example
What is the interest rate required to have $10,000 in 10 years with monthly deposits of $50.00 per month?
Data Entry
Use the following values for the prompts:
Prompt |
Value |
|
Calculation Type |
Accumulation |
|
Calculate |
Interest Rate |
|
Current Account Value |
0 |
|
Number of Years |
10 |
|
Amount of Each Deposit |
$50 |
|
Type of Deposits |
Level Deposits |
|
Deposits per Year |
12 |
|
Deposits Made at |
End of Period |
|
Projected Value |
$10,000 |
Result
The Calculated Interest Rate shows 9.8629%.