Asked by cj

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?
Answered by economyst
An Excel spreadsheet is very good for these types of problems.
Answered by cj
It may help if I knew how to do the equation.
Answered by economyst
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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