Business
Engineering
Math
Science
Social Science
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?
Fundamentals of Financial Manageme...
Solutions
Fundamentals of Financial Manageme...
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?
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:
Here, n is the time
Calculation:
Substitute the respective values in the formula.
Chapter 5 Solutions
Additional Business Textbook Solutions
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Accounting Information Systems
Accounting Information Systems
Foundations of Business (MindTap Course List)
Intermediate Accounting: Reporting And Analysis
Essentials of Business Communication (MindTap Course List)
Financial & Managerial Accounting
Exploring Economics
Accounting (Text Only)
Financial Accounting
College Accounting, Chapters 1-27
Essentials of Economics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
College Accounting (Book Only): A Career Approach
Management, Loose-Leaf Version
Financial & Managerial Accounting
Principles of Microeconomics (MindTap Course List)
Financial Accounting
Corporate Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
STATISTICS F/BUSINESS+ECONOMICS-TEXT
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Financial And Managerial Accounting
Principles of Economics (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Contemporary Marketing
Brief Principles of Macroeconomics (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Principles of Macroeconomics (MindTap Course List)
College Accounting (Book Only): A Career Approach
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Economics (MindTap Course List)
Corporate Financial Accounting
Macroeconomics
Cornerstones of Cost Management (Cornerstones Series)
Purchasing and Supply Chain Management
Microeconomics
Practical Management Science
Economics For Today
Principles of Microeconomics
MACROECONOMICS FOR TODAY
Economics: Private and Public Choice (MindTap Course List)
Cornerstones of Financial Accounting
Macroeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
