Question

You have $12,949.72 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $220.000. You expect

to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number
ps
years​

Answer 1

Answer: 15

Step-by-step explanation:

Given the following :

Interest per annum (I / YR) = (12 / 1) = 12

Future value (FV) = $220,000

Present Value (PV) = $12,949.72

Payment per period (PMT) = $4000

Using the online financial calculator :

The number of periods to attain a future value of $220,000 with a present value of $12,949.72 and periodic payment of $4000 at an interest rate of 12% per annum is 15.

Therefore, the number of periods is 15.

Inputting the above parameters into the online financial calculator gives a period (N) value of 15.