Jane Smith has $20,000 in a brokerage account, and she plans to contribute an additional $7,500 to the account at the end of every year. The brokerage account has an expected annual return of 8%. If Jane's goal is to accumulate $375,000 in the account, how many years will it take for Jane to reach her goal?

Question

Jeffrey

Business

29 August, 21:08

Jane Smith has $20,000 in a brokerage account, and she plans to contribute an additional $7,500 to the account at the end of every year. The brokerage account has an expected annual return of 8%. If Jane's goal is to accumulate $375,000 in the account, how many years will it take for Jane to reach her goal?

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Answers (1)

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Charlotte Cooke · Answer 1

how many years will it take for Jane to reach her goal?

19 years

Explanation:

Years Investm % Int. Int. capital

1 20.000,00 8% 1.600 21.600

2 29.100,00 8% 2.328 31.428

3 38.928,00 8% 3.114 42.042

4 49.542,24 8% 3.963 53.506

5 61.005,62 8% 4.880 65.886

6 73.386,07 8% 5.871 79.257

7 86.756,95 8% 6.941 93.698

8 101.197,51 8% 8.096 109.293

9 116.793,31 8% 9.343 126.137

10 133.636,78 8% 10.691 144.328

11 151.827,72 8% 12.146 163.974

12 171.473,94 8% 13.718 185.192

13 192.691,85 8% 15.415 208.107

14 215.607,20 8% 17.249 232.856

15 240.355,77 8% 19.228 259.584

16 267.084,24 8% 21.367 288.451

17 295.950,98 8% 23.676 319.627

18 327.127,05 8% 26.170 353.297

19 360.797,22 8% 28.864 389.661