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.
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.
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