Q1:

Suppose that you are now 35 and you have accumulated $87,000 in your savings account. Suppose also that you find a new investment account that will pay you an annual rate of 4% compounded quarterly. The future value at retirement age (65, 30 years from now) of your savings is closest to?

a. $497,530

b. $9,627,643

c. $287,134

d. $282,176

Q2:

Suppose that you are now 35 and you hace accumulated $87,000 in your savins account. Suppose also that you find a new investment account that will pay you an annual rate of 4%. The future value at retirement (age 65, 30 years from now) of your savings is closest to?

a. $497,530

b. $9,627,643

c. $287,134

d. $282,176