Edward Johnson decided to open up a Roth IRA. - 4330

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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. $250,321 

B. $125,250 

C. $363,000 

D. $414,405 

 
Solution Description

Edward Johnson decided to open up a Roth IRA. He will invest $1,800 p