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Question

**The problem is complex financial problems that require several skills, perhaps some from previous sections.**

A small business owner contributes $\$ 3000$ at the end of each quarter to a retirement account that earns $8 \%$ compounded quarterly.

(a) How long will it be until the account is worth $\$ 150,000$?

(b) Suppose when the account reaches $\$ 150,000$, the business owner increases the contributions to $\$ 5000$ at the end of each quarter. What will the total value of the account be after $15$ more years?

Solution

VerifiedAnswered 1 year ago

Answered 1 year ago

Step 1

1 of 14In this exercise, the task is to determine the number of time periods needed to reach the benchmark future value considering the given input data and then to calculate the total amount of money on the account.

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