Jamal wants to invest $150 every month for 10 years.   At the end of that time he would like to have $25000.  At what annual interest rate, compounded monthly, does Jamal need to invest to reach his goal?

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This question is related to the future value of growing annuity. It is given by;

`FV = A((1+i)^n-1)/i`

 

FV = Future value of the time period n

A = Initial payment at n=1

i = compound rate

n = number of payment period considered

 

(The entire section contains 107 words.)

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