The accumulated value of a savings account based on regular periodic payments can be

Chapter 2, Problem 2.3.26

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The accumulated value of a savings account based on regular periodic payments can be determined from the annuity due equation, A = P i [(1 + i) n 1]. In this equation, A is the amount in the account, P is the amount regularly deposited, and i is the rate of interest per period for the n deposit periods. An engineer would like to have a savings account valued at $750,000 upon retirement in 20 years and can afford to put $1500 per month toward this goal. What is the minimal interest rate at which this amount can be invested, assuming that the interest is compounded monthly?

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