SOLUTION: you have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. you expect to earn 12%

Question 1200798: you have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. you expect to earn 12% annually on the account. how many years will it take to reach your goal?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
present value = -42,180.53
future value = 250,000.
payment at the end of each year = 5,000.
interest rate = 12% per year.
the calculator at https://arachnoid.com/finance/ can help you find the answer.
pv = -42,180.53
fv = 250,000
np = number of time periods = what you want to find.
pmt = -5,000
ir = 12
payment is at end of time period.
results are shown below:

the present value and the payment are shown as negative because it's money you invested.
the future value is positive because it's money you received from your investment.
answer is 11 years to earn 250,000 with a payment of 5,000 at the end of each year at 12% interest per year.

RELATED QUESTIONS
4. You are planning to deposit $15,000 into a bank account at the end of each year for 5... (answered by Theo)

John Roberts has $42,180.53 in a brokerage account, and he plans to contribute an... (answered by stanbon,gromo)

You deposit $500 in an account today and an additional amount X in one year. The account... (answered by josgarithmetic)

What will the future value be if you open the account with $1,000 today, and then make... (answered by ikleyn)

You deposit $10,000 in an account that pays 5.5% interest compounded quarterly. A.... (answered by greenestamps)

You receive a $165,000 inheritance from your parents and invest it in a savings plan... (answered by Theo)

1)Suppose you invest $150 at the end of each month for 6 years into an account earning 6% (answered by ikleyn)

1 A person wishes to deposit $5,000 per year in a savings account which earns interest of (answered by ikleyn)

A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 (answered by ikleyn)