Question

You have $23,783.37 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $270,000. You expect to earn 13% 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.

____ years

Answer 1

Information provided:

Present value (PV)= $23,783.37

Annual deposit (PMT)= $3,000

Future value (FV)= $270,000

Market rate= yield to maturity (I/Y)= 13%

Enter the below in a financial calculator to compute the time of the investment:

PV= -23,783.37

PMT= -3,000

FV= 270,000

I/Y= 13

Press the CPT key and N to compute the time of the investment.

The value obtained is 47.32.

Therefore, it will take 47.32 years to reach your goal.

In case of any query, kindly comment on the solution.