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Homework answers / question archive / James's friend, Brandon, has hired a financial planner for advice on retirement
James's friend, Brandon, has hired a financial planner for advice on retirement. Considering Brandon's current expenses and expected future lifestyle changes, the financial planner has stated that once Brandon crosses a threshold of $19,388,019 in savings, he will have enough money for retirement. Brandon has nothing saved for his retirement yet, so he plans to start depositing $55,000 in a retirement fund at a fixed rate of 12.00% at the end of each year. It will take years for Brandon to reach his retirement goal.
We can calculate the number of years by using the following formula in excel:-
=nper(rate,-pmt,pv,fv)
Here,
Nper = Number of years
Rate = 12.00%
Pmt = $55,000
PV = $0
FV = $19,388,019
Substituting the values in formula:
=nper(12%,-55000,0,19388019)
= 33.25 years
