A small business owner contributes $2,000 at the end of each quarter to a retirement account that earns 10% compounded quarterly. (a) How long will it be until the account is worth at least $150,000? (Round your answer UP to the nearest quarter.) (b) Suppose when the account reaches $150,000, the business owner increases the contributions to $8,000 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.)
A small business owner contributes $2,000 at the end of each quarter to a retirement account that earns 10% compounded quarterly. (a) How long will it be until the account is worth at least $150,000? (Round your answer UP to the nearest quarter.) (b) Suppose when the account reaches $150,000, the business owner increases the contributions to $8,000 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.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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A small business owner contributes $2,000 at the end of each quarter to a retirement account that earns 10% compounded quarterly. (a) How long will it be until the account is worth at least $150,000? (Round your answer UP to the nearest quarter.)
(b) Suppose when the account reaches $150,000, the business owner increases the contributions to $8,000 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.)
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