Question

You have $48,540.47 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $350,000. You expect to earn 11.4% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.

Answer 1

Information provided:

Present value= $48,540.47

Yearly deposit= $6,000

Future value= $350,000

Interest rate= 11.4%

The number of years to reach the goal of $350,000 is calculated with the help of a financial calculator.

Enter the below in the financial calculator:

PV= -$48,540.47

FV= $350,000

PMT= $6,000

I/Y= 11.4%

Press the CPT key and N to calculate the number of years taken to reach the goal

The value obtained is 12.79 13

Therefore, it takes 13 years to reach the goal of $350,000.