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Determining the annual rate of return

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Reference no: EM133123111

An organization plans to save $7,750 per month for a new building. The organization also will invest $12,000 it already has in reserves. (Hint: When a problem involves monthly payments, assume monthly compounding.)

a) What annual rate of return must the organization earn in order to accumulate $525,000 at the end of ?ve years?

b) If the organization can only earn an annual rate of 1.85%, how many years will it need to accumulate $525,000?

Reference no: EM133123111

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