Posted by cj on Thursday, January 10, 2008 at 9:37am.
John Roberts has $42,180.53 in a brokerage account, and he plans to contribute an addtional $5,000.00 to the account at the end of the year. the brokerage account has an expected annual return of 12%. If John's goal is to accumulate $250,000.00 in the account, how many years will it take John to reach his goal?

finance management  economyst, Thursday, January 10, 2008 at 10:45am
An Excel spreadsheet is very good for these types of problems.

finance management  economyst, Thursday, January 10, 2008 at 5:03pm
In year 0, he has B0=42,180.53
In year 1, he has B1=B0*1.12 + 5000.
In year 2, he has B2=B1*1.12 + 5000.
Continue until Bn >= 250000.
Answer This Question
Related Questions
 finance  John Roberts has $42,180.53 in a brokerage account, and he plans to ...
 Finance  John Roberts has $42,180.53 in a brokerage account, and he plans to ...
 Engineering Econonmy  You decide to open an IRSapproved retirement account at ...
 Finance  You are planning to save for retirement over the next 35 years. To do...
 Finance  You are planning to save for retirement over the next 15 years. To do ...
 Math / Finance  You are planning to save for retirement over the next 15 years...
 Finance  john deposited 3000 into an account with 5% annual interest rate ...
 finance  You currently have $22,500 in your retirement account. What annual ...
 Finance  You are planning to save for retirement over the next 15 years. To do ...
 Finance  Mary just deposited $33,000 in an account paying 7% interest. She ...
More Related Questions