Ira Roth opens up a Roth IRA and places 4,000 in his retirement account at the beginning of each year for 15 years.He believes the account will earn 6 percent interest per year,compounded monthly.How much will he have in his retirement account in 15 years?

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The correct answer is A. The future value of an annuity is calculated using the formula: FV = P * ((1 + r/n)^(n*t) - 1) / (r/n)where:P is the periodic paymentr is the annual interest raten is the number of compounding periods per yeart is the number of yearsIn this case, P = 4,000, r = 0.06, n = 12, and t = 15. Plugging these values into the formula, we get:FV = 4,000 * ((1 + 0.06/12)^(12*15) - 1) / (0.06/12)= 4,000 * (1.005^180 - 1) / 0.005= 4,000 * 100.11522= $100,115.22

Ira Roth Opens Up a Roth IRA and Places 4,000