Question

You have $34,977.24 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal

Answer 1

13.82 years

Step-by-step explanation:

The computation of the number of years taken for reaching the goal is as follows:

Given that

PV is $34,977.24

PMT is $4,000

FV is $240,000

RATE is 14%

The formula is shown below:

=NPER(RATE,PMT,PV,-FV,TYPE)

AFter applying the above formula, the number of years is 13.82 years