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?
a. It will take approximately 33.5 years for the account to reach $150,000.
b. The total value of the account after 15 more years will be approximately $541,845.