Answer: a.5.98%
Explanation:
Using the RATE function in Excel, the annual rate of return required can be found with relative ease.
Number of periods = 30 * 12 months = 360 months
Payment = $1,000
Present Value = 0
Future value = -$1,000,000
The rate given is a monthly rate of 0.4958789%
This is a year rate of = 0.4958789 * 12 = 5.9505468%
Which is closest to 5.98%
