You have $12,949.72 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $220.000. You expect

to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number

ps

years

Question

Business

Louis Oneill

29 April, 17:34

You have $12,949.72 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $220.000. You expect

to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number

ps

years

+2

Answers (1)

Know the Answer?

Ruth Richards · Answer 1

Answer: 15

Explanation:

Given the following:

Interest per annum (I / YR) = (12 / 1) = 12

Future value (FV) = $220,000

Present Value (PV) = $12,949.72

Payment per period (PMT) = $4000

Using the online financial calculator:

The number of periods to attain a future value of $220,000 with a present value of $12,949.72 and periodic payment of $4000 at an interest rate of 12% per annum is 15.

Therefore, the number of periods is 15.

Inputting the above parameters into the online financial calculator gives a period (N) value of 15.