Question

You have $12,241.93 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $210,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.

Answer 1

The number of years is 15 years

Explanation:

From the question we are told that

The present value is
`PV = - \$ 12,241.93`

The year payment required to reach future goal is
`PMT = - \$5,000`

The future goal is
`FV = \$210,000`

The interest per year is
`r = 10\% = 0.10`

The negative sign shows that the fund are not gain made but they are being deducted

Using the excel formula NPER (r , PMT , PV , FV , 0 )

Here the 0 stands for type

The implantation on excel is shown on the first uploaded image