Edward Johnson decided to open up a Roth IRA. - 2345

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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.   $363,000

B.   $414,405

C.   $125,250

D.   $250,321

Solution Description

Edward Johnson decided to open up a Roth IRA. He will invest $1,800 per year for the next