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. 

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?

Answer rating: 100% (QA)

To determine the return per year Andrew must earn on the annuity investment we can use the future va... View the full answer