01 Feb

you have been depositing $ 250 per quarter in a savings

by jagguarpaw On: Finance - 0 Comment

Question: As a part of your savings plan at work, you have b…

As a part of your savings plan at work, you have been depositing $ 250 per quarter in a savings account earning 8% interest compounded quarterly for the last 10 years. You will retire in 15 years and want to increase your contribution every quarter from $ 250 to $ 500. Additionally, you have just inherited $10,000, which you plan to invest now to earn interest at 12% compounded annually for the next 15 years. How much money will you have in savings when you retire 15 years from now? Using financial calculator.

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