finance management

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?

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asked by cj

  1. An Excel spreadsheet is very good for these types of problems.

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    posted by economyst

  2. It may help if I knew how to do the equation.

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    posted by cj

  3. 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.

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    posted by economyst

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