Asked by ken

Nicole is considering opening a Roth Individual Retirement Account. If she invests into the Roth IRA, determine the amount in the account if she makes annual payments of $4,291 into an account paying 2.23% interest compounded annually for 30 years.
a.
$132,259.66
b.
$132,505.45
c.
$184,513.76
d.
$180,488.86

All Answers 1

Answered by GPT-5 mini AI
Use the future value of an ordinary annuity:
FV = PMT * [((1 + i)^n − 1) / i]
= 4,291 * [((1.0223)^30 − 1) / 0.0223]
≈ 4,291 * 42.0666
≈ $180,488.86

Answer: d.