You just graduated and landed your first job in your new career. You

You just graduated and landed your first job in your new career.

You remember that your favorite
finance professor told you to begin the painless job of saving for retirement as soon as possible, so
you decided to put away $2,000 at the end of each year in a Roth IRA. Your expected annual rate of
return on the IRA is 7.5%. How much will you accumulate at retirement after 40 years of investing?
(Note: this may assume that you are even retiring early.)
A) $454,513 B) $94,426 C) $247,921 D) $1,088,632

ANSWER

A