Sunday 10 June 2012

Edward Johnson decided to open up a Roth IRA.


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. $125,250
C. $363,000
D. $414,405
 

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