Question

Oleg has $2,000 in his bank account, and plans to add 5,000 at the end of each future years until it reaches $250,000. He expect to earn 7% annually on the account, how many years (and or months) will it it take to reach his goal?

Answer 1

	Amount investment = $ 5,000
	Interest rate per year = 7% per annum
	Years	Deposite	Interest @ 7% Per Year	Running Bal	Remarks
	0			$2,000.00
	1	$5,000	$140.00	$7,140.00	interest charged on opening balance
	2	$5,000	$499.80	$12,639.80	Interest charged on closing balance of last year
	3	$5,000	$884.79	$18,524.59
	4	$5,000	$1,296.72	$24,821.31
	5	$5,000	$1,737.49	$31,558.80
	6	$5,000	$2,209.12	$38,767.91
	7	$5,000	$2,713.75	$46,481.67
	8	$5,000	$3,253.72	$54,735.39
	9	$5,000	$3,831.48	$63,566.86
	10	$5,000	$4,449.68	$73,016.54
	11	$5,000	$5,111.16	$83,127.70
	12	$5,000	$5,818.94	$93,946.64
	13	$5,000	$6,576.26	$1,05,522.90
	14	$5,000	$7,386.60	$1,17,909.51
	15	$5,000	$8,253.67	$1,31,163.17
	16	$5,000	$9,181.42	$1,45,344.60
	17	$5,000	$10,174.12	$1,60,518.72
	18	$5,000	$11,236.31	$1,76,755.03
	19	$5,000	$12,372.85	$1,94,127.88
	20	$5,000	$13,588.95	$2,12,716.83
	21	$5,000	$14,890.18	$2,32,607.01
	22	$1,110.5	$16,282.49	$2,50,000.00
	For Reach $ 250,000 22 years is required,
	Amount is deposited at the end of the year so amount required in 22nd year is only $ 1,110.50
	Answer = 22 Years or 22 Years X 12 Months = 264 Months