Answer:
Luis will have $ 1,153,675.657524 in his account at the time of his retirement.
Explanation:
Acording to the data Luis has $170,000 in his retirement account
His current account after 30 years at 4.5% compounded quarterly will be
Current account = $ 170,000(1 + (0.045/4))^(4*30)
Current account = $ 650,838.260724
Acording to the data Luis also plans to put $2000/quarter into the new account until his retirement 30 years from now.
The future value (FV) of the account will be
FV = 2000[(1 + (0.045/4))^(4*30) -1] / (0.045/4) 0.01125
FV = $ 502,837.3968
Therefore, to calculate how much will Luis have in his account at the time of his retirement we have to calculate the following:
Total amount
= Current account+FV
Total amount = $ 650,838.260724 + $ 502,837.3968
Total amount = $ 1,153,675.657524
Luis will have $ 1,153,675.657524 in his account at the time of his retirement.
