Question

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?


I do not need anyone to do the wok I just need to know how to solve the problem. Thanks

Answer 1

Using a spreadsheet method, in which $5000 and the accrued 12% interest of the balance on deposit a year earlier are added each year, and doing the problem "by hand", I get the time required to be almost exactly 11 years.

Continue this process 11 times:

(end of) initial deposit intrst total
Year # balance
1 42181 5000 5062 52243
2 52243 5000 6269 62512
etc