If you invest $ 1,000 today and earn $ 1,000,000 in 40 years, what is your time-compounded annual rate of return? use Excel explain steps

If you invest $ 1,000 today and earn $ 1,000,000 in 40 years, what is your time-compounded annual rate of return? use Excel explain steps

 

 

answer:

As per FV formula ,
FV = PV*(1+r)^n
Here,
FV 1000000
PV 1000
n 40
r ?
1000000 = 1000*(1+r)^40
(1+r)^40 = 1000
1+r = 1.188502
r = 18.85%
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