document.write( "Question 1148922: Luis has $110,000 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 $2000/quarter into the new account until his retirement 25 years from now. If the new account earns interest at the rate of 3.5%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Hint: Use the compound interest formula and the annuity formula. (Round your answer to the nearest cent.) \n" ); document.write( "

Algebra.Com's Answer #770316 by ikleyn(52787) $\"\"$ $\"About$

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document.write( "It works as a combination of two separate accounts:\r\n" );
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document.write( "    - one account is fixed principal of $110000 earning 3.5% compounded quarterly during 25 years, and\r\n" );
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document.write( "    - the second account is a classic Ordinary Annuity plan with the regular quarterly deposits of $2000 \r\n" );
document.write( "      compounded quarterly at 3.5% annual percent rate.\r\n" );
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document.write( "For the first account, the formula and the final asset are\r\n" );
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document.write( "    Future value F1 =  = $262873.89\r\n" );
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document.write( "For the second account, the formula and the final asset are\r\n" );
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document.write( "    Future value F2 =  =  = $317660.04.\r\n" );
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document.write( "Now the answer is the sum  F1 + F2 = $262873.89 + $317660.04 = $580533.93.\r\n" );
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