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    shannonthorn's Avatar
    shannonthorn Posts: 5, Reputation: 1
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    #1

    Jan 30, 2008, 08:33 PM
    Reaching a financial goal
    John Roberts has $42,180.53 in a brokerage account, and he plans to contribute an additional $5,000 to the account at the end of every year. The brokerage account has an expected annual return of 12 percent. If John’s goal is to accumulate $250,000 in the account, how many years will it take for John to reach his goal?
    chelsface2's Avatar
    chelsface2 Posts: 4, Reputation: 1
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    #2

    Jan 30, 2008, 08:38 PM
    About 15 years
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #3

    Mar 8, 2009, 06:03 PM

    You reach your goal at the end of the 11th year.

    See Schedule:-

    YEAR
    1 42,180.53 47,242.19
    2 52,242.19 58,511.25
    3 63,511.25 71,132.60
    4 76,132.60 85,268.51
    5 90,268.51 101,100.73
    6 106,100.73 118,832.82
    7 123,832.82 138,692.76
    8 143,692.76 160,935.89
    9 165,935.89 185,848.20
    10 190,848.20 213,749.98
    11 218,749.98 244,999.98
    12 249,999.98
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