How much will you have in a Roth IRA if you invest $5,000 a year for 35 years if money earns 5% and you make the investment at the end of each year?
A)$451,601.54
B)$557,173.89
C)$474,181.61
D)$590,604.33

Question

Quizplus · Accepted Answer

The correct answer is A because the future value of an annuity due can be calculated using the formula: FV = PMT * (((1 + r)^n - 1) / r) * (1 + r), where PMT is the annual payment, r is the annual interest rate, and n is the number of years. Plugging in the given values, we get: FV = $5,000 * (((1 + 0.05)^35 - 1) / 0.05) * (1 + 0.05) = $451,601.54.

How Much Will You Have in a Roth IRA If