Question

Financial Algebra ..

Answer 1

Melissa made contributions to a Roth IRA over the course of 41 working years. Her contributions averaged $2,750 annually. Melissa was in the 26% tax bracket during her working years. The average annual rate of return on the account was 5.5%. Upon retirement, Melissa stopped working and making Roth IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Melissa dropped into the 10% tax bracket. Factoring in taxes, what is the effective value of Melissa’s Roth IRA at retirement? Assume annual compounding.

$369,762.04

$419,762.04

$381,037.04

$387,802.0

Answer 2

My work : http://www.wolframalpha.com/input/?i=FOVA%3D2750*%28%281%2B0.055%29%5E%281.41%29-1%29%29%2F%280.055%29

Answer 3

Or this : http://www.wolframalpha.com/input/?i=FOVA%3D2750*%28%281%2B0.055%29%5E%281*41%29-1%29%29%2F%280.055%29