55 Finding the Number of Years N Time to reach a financial g

5-5: Finding the Number of Years, N Time to reach a financial goal You have $26,454.48 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $260,000, You expect to eam 1 1% annually on the account. How many years will it take to reach your goal? Round your answer to two dearnal places at the end of te calculations. years

Solution

PV = 26,454.48, PMT = 6,000, FV = -260,000, rate = 11%

use nper funciton in Excel

number of years = 13.00

b. interest rate = (1,650k/380k)^1/22 - 1

interest rate = 6.90%