Planning to roll over his assets to new account

Assignment Help Financial Management

Reference no: EM132041367

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 20 years from now. If the new account earns interest at the rate of 2.5%/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.)

Reference no: EM132041367

Questions Cloud

Considering some strategies for hedging interest-rate risk : Assume you are the manager of a financial institution. You are considering some strategies for hedging interest-rate risk.

How can technology be used as a marketing tool : What are some considerations for developing a salary schedule? (What should be considered as earning an employee more money, etc.)

System rather than solely a trade route : Why is the Silk Road be afforded as a social system rather than solely a trade route?

Computing the monthly payments on the mortgage : You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25%.

Planning to roll over his assets to new account : Because he is assuming a position with another company, Luis is planning to "roll over" his assets to a new account.

Declarations of causes and orders of secession : What did the seceding southern states list as their primary reason for secession in the Declarations of Causes and Orders of Secession?

How you can become the agent of change to make them : As you read the article, think about each strategy that is mentioned and how you have seen this work in your school.

What is the future value of your deposits : You plan to save for your retirement by depositing 15 payments of $10,000 into an account every other year. The first payment is made one year from today.

Declarations of causes and orders of secession : What did the seceding southern states list as their primary reason for secession in the Declarations of Causes and Orders of Secession?

User Account

All Pages