Ira Roth opens up a Roth IRA and places $4,500 in his retirement account at the beginning of each year for 20 years. He believes the account will earn 8 percent interest per year, compounded quarterly. How much will he have in his retirement account in 20 years?

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The correct answer is C. $228,912.40.The formula for the future value of an annuity is: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 times per year that the interest is compoundedt is the number of yearsIn this case, P = $4,500, r = 8%, n = 4 (since the interest is compounded quarterly), and t = 20. Plugging these values into the formula, we get:FV = $4,500 * (((1 + 0.08/4)^(4*20)) - 1) / (0.08/4))= $4,500 * (((1.02)^80) - 1) / (0.02))= $4,500 * (2.1922848 - 1) / (0.02)= $4,500 * 1.1922848 / 0.02= $228,912.40

Ira Roth Opens Up a Roth IRA and Places $4,500