Question

You have $32,391.19 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $260,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.

Answer 1

The correct answer is 14 Years

Note:

Year	Beginning Balance	Interest (Beginning Balance *11%)	Addition	Ending balance(Beginning Balance + Interest+ Addition)
1	32,391.19	3,563.03	4,000.00	39,954.22
2	39,954.22	4,394.96	4,000.00	48,349.19
3	48,349.19	5,318.41	4,000.00	57,667.60
4	57,667.60	6,343.44	4,000.00	68,011.03
5	68,011.03	7,481.21	4,000.00	79,492.24
6	79,492.24	8,744.15	4,000.00	92,236.39
7	92,236.39	10,146.00	4,000.00	1,06,382.39
8	1,06,382.39	11,702.06	4,000.00	1,22,084.46
9	1,22,084.46	13,429.29	4,000.00	1,39,513.75
10	1,39,513.75	15,346.51	4,000.00	1,58,860.26
11	1,58,860.26	17,474.63	4,000.00	1,80,334.89
12	1,80,334.89	19,836.84	4,000.00	2,04,171.73
13	2,04,171.73	22,458.89	4,000.00	2,30,630.62
14	2,30,630.62	25,369.37	4,000.00	2,59,999.98

It can be seen that Ending Balance equals 260,000 at Year 14 end.