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A small business owner contributes $2000 at the end of each quarter to a retirement account...

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Question

Basic Math

A small business owner contributes $2000 at the end of eachquarter to a retirement account that earns 4% compoundedquarterly.

(a) How long will it be until the account is worth $150,000?(Round your answer UP to the nearest quarter.)
quarters the asnwer is not 56
(b) Suppose when the account reaches $150,000, the business ownerincreases the contributions to $8000 at the end of each quarter.What will the total value of the account be after 15 more years?(Round your answer to the nearest dollar.)
$ the answer is not 907891

Answer & Explanation Solved by verified expert
3.7 Ratings (330 Votes)
aThe formula for the future value F of an annuity is F P 1rn1r where P is periodic payment r is the interest rate per period and n is the no of periods Here P 2000 r 4400 001 Let the required    See Answer
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