Average rate of return they must earn


Problem:

The Rabbits hope to accumulate $2,000,000 for retirement in 20 years. They do not have any money saved right now and are getting off to a late start, but they can save $10,713 annually in their 401k plan. You, unfortunately, must tell them what average rate of return they must earn on their investment to reach their goal. What is it?

Note: Explain all steps comprehensively.

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Finance Basics: Average rate of return they must earn
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