Annuity - norminal interest rate PLEASE HELP?

Question

q: david wants to get rich quick. he has nothing and he wants $2 millions and is prepared to invest $ 5000 at the end of every month. what (norminal) annual interest rate (with monthly compounding) would achieve this if he wants to acheive his in 5 years??

answer: 63.65%

what i did was i=FV/PV ^1/60 - 1 = 0.10501371 =10.5%

fv=2 mil

pv=5000

n=5*12=60

ive searched everywhere and i couldnt get it right ... the book we are use are all calculater based answers... but i need to answer this manually. thank you in advance!!!

Answer 1

the formula you used is wrong,the sum given is based on recurring deposit.but i don't know the exact formula,sorry

Answer 2

You are looking for Time Value of Money, solving for the interest rate. Have to use trial and error if you are doing it manually.

Tough and excellent question!