A bank through its TV ads is trying to interest you in an IR

A bank (through its TV ads) is trying to interest you in an IRA (individual retirement account). They say that if you invest $10,000 per year for the next 30 years in their IRA, you will have a nest egg of $1,000,000 to retire on. What interest rate are they using assuming the money is deposited at the end of the year and that the compounding period is yearly?

Solution

FV = PV ( 1+ i)ⁿ

$1,000,000 = $10,000 ( 1+ i)³⁰

$100 = (1+i)³⁰

Solving we get I = 7.32%