Question

You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?

Answer 1

Answer:

So  he will reach the target after 36 years , that is 37 years

Explanation:

Let the number of years needed be n

Since the amount is incremented by 5,000 +0.12 times of the amount , we

get the below equation.

(42,180.53 + n×5,000) + 0.12×(42,180.53 + n×5,000) =250,000

42,180.53+ 5,061.6636 + 5000×n + 600×n =250,000

47,242.1936+ 5600n= 250,000

5600×n= 202,757.8064

n=36.2 years

So  he will reach the target after 36 years , that is 37 years