Question

If Derek plans to deposit $10,169.00 into his retirement account on each birthday beginning with his 26th and the account earns 9.00%, how long will it take him to accumulate $3,933,654.00?

Answer format: Number: Round to: 2 decimal places.

Answer 1

We are given,

Annual deposits(pmt) = $10,169

Interest rate(r) = 9%

Future Value(FV) = $3,933,654

No of years/Time(t) = ?

We can calculate Time(t) by using excel,

pmt	-10,169
interest	9.00%
Future Value	3,933,654
No of years	40.55	(=Nper(9%,-10169,0,3933654,1)

• We will use '1' in the end of the formula as the deposits are made in the beginning of each yr(on birthdays).

It will take Derek 40.55 years(approx) to accumulate $3,933,654.

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