   # TIME TO REACH A FINANCIAL GOAL 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? BuyFindarrow_forward ### Fundamentals of Financial Manageme... 8th Edition Eugene F. Brigham + 1 other Publisher: Cengage Learning ISBN: 9781285065137 #### Solutions Chapter Section BuyFindarrow_forward ### Fundamentals of Financial Manageme... 8th Edition Eugene F. Brigham + 1 other Publisher: Cengage Learning ISBN: 9781285065137 Chapter 5, Problem 5P Textbook Problem 48 views ## TIME TO REACH A FINANCIAL GOAL 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?

Summary Introduction

To determine: The time required to reach the financial goal.

Future value:

Future value is the amount of a current asset at a certain point of time in the future, which has been accumulated at an assumed rate of growth.

### Explanation of Solution

Given information:

Present value (PV) is $42,180.53. Rate of interest (r) is 12%. Future value (FV) is 250,000. Payment (Pmt) amount made at the end of the every year is$5,000.

Required formula:

FV=Pmt((1+r)n1)r+PV(1+r)n

Here, n is the time

Calculation:

Substitute the respective values in the formula.

250,000=5,000((1+0.12)n1)0

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Find more solutions based on key concepts
What is job specification?

Foundations of Business (MindTap Course List)

Explain and provide examples of deferrals, accruals, and estimates.

Intermediate Accounting: Reporting And Analysis

Why should policymakers think about incentives?

Principles of Microeconomics (MindTap Course List)

What does human capital include?

Pkg Acc Infor Systems MS VISIO CD 