Bobby's parents loaned him $60,000 to fund his college education. His parents are not charging interest. They desire to be paid one lump sum of $60,000 when Bobby can accumulate that amount. Bobby established a savings plan that earns 11% compounded annually. His new job promises to pay an annual holiday bonus that will enable him to make equal annual, year-end deposits of $6,800 starting next year. Approximately how many years will it take Bobby to accumulate the $60,000? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest year.)

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The Answer of Bobby's parents loaned him $60,000 to fund his college education. His parents are not charging interest. They desire to be paid one lump sum of $60,000 when Bobby can accumulate that amount. Bobby established a savings plan that earns 11% compounded annually. His new job promises to pay an annual holiday bonus that will enable him to make equal annual, year-end deposits of $6,800 starting next year. Approximately how many years will it take Bobby to accumulate the $60,000? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest year.)

Bobby's Parents Loaned Him $60,000 to Fund His College Education