At the end or each quarter, a 50-year-old woman purs s1500 n a retirement account that pays 7% interest compounded quarterly. When she reaches age 60, she withdraws the entire amount and places it n a muhial fund account that pays 9% compounded monthly. From then on she deposits $400 m a mutial fünd at the end of each month How much is in the account when she reaches age 65?

latinoisraelm1

latinoisraelm1

Answered question

2022-08-07

At the end or each quarter, a 50-year-old woman purs s1500 n a retirement account that pays 7% interest compounded quarterly. When she reaches age 60, she withdraws the entire amount and places it n a muhial fund account that pays 9% compounded monthly. From then on she deposits $400 m a mutial fünd at the end of each month How much is in the account when she reaches age 65?

Answer & Explanation

Rowan Dyer

Rowan Dyer

Beginner2022-08-08Added 14 answers

A = total amount in account
M = deposit
I = interest (decimal form)
n = number of compoundings per year
t = number of years
A = M ( [ 1 + ( I / n ) ] n t 1 ) ( n / I )
Use this formula once with I = .07, n = 4, t = 10 and M =1500, then again with the new information for the next 5 years andadd the two amounts together.

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