A 45-year old man puts $1000 in a retirement account at the end of each quarter until he reaches the age of 60 and makes no further deposits. If the account pays 8% interest compounded quarterly, how much will be in the account when he retires at 65?

The account will have $292,526.3494 by the time he retired

Step-by-step explanation:

The expression for the total amount earned from the investment is;

A=P (1+r/n) ^nt

where;

A=future value of investment

P=present value of investment

r=annual interest rate

n=number of periods

t=number of years

In our case;

P=deposits $1000 every 3 months for 15 years

A year has 4 periods

The present value, P=1000*4*15=$60,000

r=8%=8/100=0.08

n=4

t = (65-45) = 20 years

replacing;

A=60,000 (1+0.08/4) ^ (4*20)

A=60,000 (1.02) ^80

A=292,526.3494

The account will have $292,526.3494 by the time he retired