Nikole has already saved $20,900 in her RRSP today. Suppose she plans to continue adding $1,994 at the end of every six months for the next 5 years. In order to achieve her goal of having $60,000 at the end of the 5 years, what monthly nominal rate of return must her investment earn?

Nikole has already saved $20,900 in her RRSP today. Suppose she plans to continue adding $1,994 at the end of every six months for the next 5 years. In order to achieve her goal of having $60,000 at the end of the 5 years, what monthly nominal rate of return must her investment earn?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Nikole has already saved $20,900 in her RRSP today. Suppose she plans to continue
adding $1,994 at the end of every six months for the next 5 years. In order to achieve
her goal of having $60,000 at the end of the 5 years, what monthly nominal rate of
return must her investment earn?
Enter the future value as a positive value in the FV box below.
Enter PV and PMT as positive or negative values based on FV being positive.
Report I/Y accurate to 3 decimal places.
P/Y =
C/Y =
N =
I/Y =
PV = $
PMT = $
FV = $

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