Need help!

Question

I really need help in regards to figuring out 2 different rates (Nominal and effective rate of return) for the question below:

 

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? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Answer 1

On a business calculator enter the following amounts.

N= 60 (30 year*2 times/year)
I= ? What we are looking for
PV = 0 (do not forget to enter this, we need 4 of the 5 inputs)
PMT= $4,30.02 semiannual payment
FV= -$660,000 (either this or PMT bust be negative)

Hit I. This will give you 2.63 % but that is per semiannual period. The annual rate is twice that or 5.26%