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What is the return per year

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Jacob hopes to accumulate $2,000,000 over a 20-year period. He expects to earn a return of 5% per year on a lump-sum investment of $300,000 made today. He is also making a separate annuity investment of $40,000 at the end of each of the next 20 years.

Question 1: What is the return per year (expressed in percent with two decimals) Andrew must earn on the annuity investment so that when combined with the lump sum, he will accumulate $2,000,000 in 20 years?

Reference no: EM132465726

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