Luis has $170,000 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 $4,000/quarter into the new account until his retirement 20 yr from now. If the account earns interest at the rate of 7%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Please round the answer to the nearest cent.
(Hint: Use the compound interest formula and the annuity formula.)

A) $1,435,949.35
B) $1,422,687.09
C) $1,226,896.37
D) $1,278,652.02
E) $1,368,261.92

Question

Luis has $170,000 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 $4,000/quarter into the new account until his retirement 20 yr from now. If the account earns interest at the rate of 7%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Please round the answer to the nearest cent. ​
(Hint: Use the compound interest formula and the annuity formula.)
​
A) $1,435,949.35
B) $1,422,687.09
C) $1,226,896.37
D) $1,278,652.02
E) $1,368,261.92

Quizplus · Accepted Answer

The Answer of Luis has $170,000 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 $4,000/quarter into the new account until his retirement 20 yr from now. If the account earns interest at the rate of 7%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Please round the answer to the nearest cent. ​
(Hint: Use the compound interest formula and the annuity formula.)
​
A) $1,435,949.35
B) $1,422,687.09
C) $1,226,896.37
D) $1,278,652.02
E) $1,368,261.92

Luis Has $170,000 in His Retirement Account at His Present