An adviser gathers the following information about a client's retirement income needs:
- Current retirement fund balance: $150,000.
- Retirement horizon: 15 years.
- Required retirement fund in today's dollars: $500,000.
- No additional contributions will be made.
- Expected inflation: 2% annually.
Ignoring taxes, the minimum annual rate of return required to meet the client's retirement goal is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An adviser gathers the following information about a client's retirement income needs:
Current retirement fund balance: $150,000.
Retirement horizon: 15 years.
Required retirement fund in today's dollars: $500,000.
No additional contributions will be made.
Expected inflation: 2% annually.
Ignoring taxes, the minimum annual rate of return required to meet the client's retirement goal is closest to: