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 C. $100,115.22.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 amount of each paymentr is the annual interest raten is the number of times per year that interest is compoundedt is the number of yearsIn this case, P = $4,000, r = 6%, n = 12 (since interest is compounded monthly), 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 * (2.0126 - 1) / 0.005= $4,000 * 1.0126 / 0.005= $100,115.22

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