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Calculating appropriate interest rate

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Bill plans to retire in 25 years. He currently has saved up $200,000, and he believes he will need $1,000,000 at retirement. What annual interest rate must Bill earn to reach his goal, assuming he does not save any additional funds between now and retirement?

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Solution Summary

Solution describes the steps to calculate appropriate interest rate in the given case.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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