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.
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