Question

In: Finance

If Derek plans to deposit $10,463.00 into his retirement accounton each birthday beginning with his...

If Derek plans to deposit $10,463.00 into his retirement account on each birthday beginning with his 26th and the account earns 12.00%, how long will it take him to accumulate $2,019,998.00?

Answer format: Number: Round to: 2 decimal places.

Solutions

Expert Solution

Information provided:

Future value (PV)= $2,019,998

Annual deposit= $10,463

Yield to maturity (I/Y)= 12%

The time taken to accumulate $2,019,998 is calculated by entering the below information in a financial calculation:

FV= $2,019,998

PMT= -10,463

I/Y= 12

Press the CPT key and N to compute the time aken to accumulate $2,019,998.

The value obtained is 28.10.

Therefore, Derek takes 28.10 years to accumulate $2,019,998.

jeff jeffy answered 2 years ago
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