Edward Johnson decided to open up a Roth IRA. He will invest $1,800 pe
QUESTION
Edward Johnson decided to open up a Roth IRA. He will invest $1,800 per year for the next 35 years. Deposits to the Roth IRA will be made via a $150 payroll deduction at the end of each month. Assume that Edward will earn 8.75% over the life of the IRA. How much will he have at the end of 35 years?A
Edward Johnson decided to open up a Roth IRA. He will invest $1,800 per year for the next 35 years. Deposits to the Roth IRA will be made via a $150 payroll deduction at the end of each month. Assume that Edward will earn 8.75% over the life of the
IRA. How much will he have at the end of 35 years? A. $250,321 B. $363,000 C. $125,250 D. $414,405 8.75% / 12= 0.0729 =$150 x (1.007292)^2 —-1 / 1.007292 = $414,405
ANSWER:
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