Number of Years to Accumulate Balance

Example #1

A client currently has $100,000 in their account and is making monthly deposits of $500, increasing by 2.5% per year. They are earning 7% per year. How many years will it take for the account to grow to $1,000,000?

Data Entry

Use the following values for the prompts:


Prompt

Value


Calculation Type

Accumulation


Calculate

Number of Years


Current Account Value

$100,000


Interest Rate

7%


# of Deposits/Yeart

12


Amount of Each Deposit

500


Type of Deposits

Annual Increasing by Percent


Annual Increase in Deposit

2.5


Deposits Made at

End of Period


Annual Increase in Deposit

2.5%


Projected Value

$1,000,000

Result

The Calculated Number of Years shows 24.5275.

Example #2

How many years would it take if they quit making deposits today?

Data Entry

Enter a zero ('0') for Deposit Amount.

Results

The Calculated Number of Years recalculates to 34.0324 years.