Joe has $100,000 in an investment account

Answer:

The rate of return required is approximately 7.57% (7.56829% to be more exact).

Step-by-Step explanation

You can find the rate of growth by using the formula for compound interest, which says:

?FV=PV(1+r)n?

where FV = future value (240,000 here), PV = present value (100,000) here, r = rate of return, and n = number of periods (12 here).

We can solve this as follows:

?240000=100000(1+r)12?

Divide both sides by 100000:

2.4 = (1 + r)¹²

Now take the 12th root of both sides (i.e., the 1/12 power):

2.4^1/12 = (1 + r)

Now subtract 1:

r = 2.4^1/12 - 1 ≈ 0.0756829

This is about 7.57%, rounded to two places.