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?

Answer:The account will have $292,526.3494 by the time he retiredStep-by-step explanation:The expression for the total amount earned from the investment is;A=P(1+r/n)^ntwhere;A=future value of investmentP=present value of investmentr=annual interest raten=number of periodst=number of yearsIn our case;P=deposits $1000 every 3 months for 15 yearsA year has 4 periods The present value, P=1000×4×15=$60,000r=8%=8/100=0.08n=4t=(65-45)=20 yearsreplacing;A=60,000(1+0.08/4)^(4×20)A=60,000(1.02)^80A=292,526.3494The account will have $292,526.3494 by the time he retired