Answer:
a. Total amount after 65 years = $1179415.39
b. The total contribution to the account = $288000
Step-by-step explanation:
Given annuity amount = $1800
Total number of years for contribution = 65 – 25 = 40 years
Interest rate = 6%
a. Total amount after 65 years = Annuity[((1+r)^n -1) / r]
Total amount after 65 years = 1800×((1+.06/4)^(4 × 40) - 1)/(.06/4)
Total amount after 65 years = $1179415.39
b. The total contribution to the account =1800 × 4 Quarter × 40 Years
The total contribution to the account = $288000
