Jamal Plans to Retire in 17 Years

Jamal plans to retire in 17 years. He is saving $2000 every month in a retirement savings account paying him a long-term interest of 9% compounded monthly until retirement. The rate changes following the retirement. He wants $7000 per month paid to him for 20 years after the retirement. At what rate should his savings account pay him to fulfill his dream? (Use the Rate function in Excel)

A) 9%
B) 10%
C) 0.86%
D) 10.27%
E) 0%

Correct Answer:

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