Planning to roll over his assets to a new account

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Reference no: EM131050916

Luis has $130,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to roll over his assets to a new account. Luis also plans to put $4,000/quarter into the new account until his retirement 18 yr from now. If the account earns interest at the rate of 8%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Please round the answer to the nearest cent.

(Hint: Use the compound interest formula and the annuity formula.)

Select the correct answer.

A. $1,083,566.42

B. $1,118,751.15

C. $1,173,176.32

D. $1,240,863.75

E. $1,314,541.87

Reference no: EM131050916

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