Question

Serious help :(

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

$387,802.04

Answer 2

I tried this FOVA=C*((1+i)^(n*t)-1))/(i) and none of the answers that came out didnt match me answer choices :/

Answer 3

c=2750
i=0.055
n=1
t=41

Answer 4

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 5

@thomaster

Answer 6

@jdoe0001 you think you can help :?

Answer 7

well, doubt it without checking several sources first... is mainly the financial semantics rather than the math in it

Answer 8

Do you any other formula to this ?