Question

(Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $300. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 8 percent compounded quarterly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 20 years ago Nick received an inheritance check for $30,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? a. The amount Nick has accumulated in his retirement account is $ . (Round to the nearest cent.)

Answer 1

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? v L 1 ENG 02:13 20-02-2020 22 HU155 - X HP HS HT HU HV HW HX HY a 153 154 fx HQ R HR QUARTERLY DEPOSITS PMT RATE QUARTERLY RATE YEARS NO OF QUARTERS 155 300 8% 2.00% 156 35 157 158 140 159 FUTURE VALUE = FUTURE VALUE = FUTURE VALUE = PMT*(1/r)*((1+r)^n - 1) [FUTURE VALUE OF ANNUITY] 300*(1/0.02)*((1+0.02)^140 - 1) 224946.99 PV = INHERITANCE RATE QUARTERLY RATE YEARS NO OF QUARTERS 30000 8% 2.00% 20 80 [SIMPLE FUTURE VALUE] FUTURE VALUE = FUTURE VALUE = FUTURE VALUE = PV*(1+r)^n 30000*(1+0.02)^80 146263.17 173 174 175 CURRENT BALANCE IN FUND 371210.16 (224946.99 + 146263.17] 176 ... pv, tv, annuity CAP STRU VALUE PM, PMT loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPO NPER APR CPI ear FVA S2 pva :... :