Question

You have $25,832.81 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $210,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.

Answer 1

Answer: 14 years

Step-by-step explanation:

The question states that an individual has $25,832.81 in a brokerage account, and plan to deposit an additional $4,000 at the end of every future year until the money in the account totals $210,000 and it's expected to earn 10% annually on the account.

To know the number of years that it'll take to reach the goal, we'll solve this in Excel as:

= =NPER (10%,-4000,-25832.81, 210000).

= 14 years

Therefore, it'll take 14 years to reach the goal.