Suppose Mr. Pink is 28 years old right now and puts away $1,800 per quarter in an account that returns 6% interest. a.) How much will be in the account when he turns 68? b.)What is his total contribution to the account?

(a) When he turns 68 , the account will have = $1,179,415.39

(b) $ 288,000

Step-by-step explanation:

Formula: Future value of annuity =, where P+ periodic payment, r = rate of interest per period, n= number of periods.

As per given, we have

P= $1800

rate of interest = 6% = 0.06

(a) n= 68-28 = 40

Rate per period : r=  

Number of periods: n = 4x 40 =160

Now, Future value of amount when Mr. Pink turns 28 years =

Hence, when he turns 68 , the account will have = $1,179,415.39

(b) Total contribution = P × n

=1800 × 160

=$ 288,000

Hence, Total contribution =$ 288,000