A small business owner contributes $3000 at the end of each quarter to a retirement account that earns 8% compounded quarterly.
How long will it be until the account is worth $150,000?
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?
1 answer
It will take approximately 25 years for the account to reach $150,000. After 15 more years, the total value of the account will be approximately $541,845.
1 answer