Luis has $180,000 in his retirement account at his present company. Because he i

Question

Luis has $180,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to roll over his assets to a new account. Luis also plans to put $2500/quarter into the new account until his retirement 25 years from now. If the new account earns interest at the rate of8%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Hint: Use the compound interest formula and the annuity formula. (Round your answer to the nearest cent.)

Explanation / Answer

FV= 180000*(1+0.08/4)^(25*4)= 780,580.76

FV= 2500*((1+0.08/4)^(25*4)-1)/(0.08/4)=1,304,036.30

answer 2,084,617.07

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