Complex annuity upon graduating from college 35 years ago


Question: (Complex annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already thinking of retirement. Since then, he has made deposits into his retire - ment fund on a quarterly basis in the amount of $300. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned a 9 percent APR compounded quarterly.

a. How much has Nick accumulated in his retirement account?

b. In addition to his deposits 15 years ago, Nick received an inheritance check for $20,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund?

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