math help needed

Question

If RRSP contributions of $4630.02 at the end of every six months are projected to generate a plan worth $660,000 in 30 years, what nominal rate compounded semi-annually and effective rates of return were assumed in the forecast?

 

please help me calculate the nominal rate and effective rate.

Answer 1

In order to solve this question, it is necessary to look at the Future Value formula, and work backwards to the annual rate 
The formula is FV = P [ ((1 + r/t)nt - 1 ) / r/n ]
 
where FV = future value (in this case, $660,000), P = Payments, r = annual rate, t = time in years, n = number of payments per year 
 
Please rearrange the formula to solve for r, insert your values, and perform the calculation