What monthly compounded nominal rate of return must Rachel earn in her RRSP in order for month-end contributions of $600 to accumulate to $750,000 in 25 years?

A) 8.04%
B) 9.65%
C) 10.09%
D) 11.48%
E) 13.50%

To find the monthly compounded nominal rate of return, we can use the future value of an annuity formula: $FV=P\times \frac{(1+r{)}^n-1}{r}$ , where $FV$ is the future value, $P$ is the payment amount, $r$ is the monthly interest rate, and $n$ is the total number of payments. Given $FV=750,000$ , $P=600$ , and $n=25\times 12=300$ , we solve for $r$ . This is a financial calculation that typically requires a financial calculator or software to solve directly for $r$ . The correct answer, 9.65%, indicates the nominal rate of return, compounded monthly, that would allow Rachel's $600 monthly contributions to grow to $750,000 over 25 years.