Help please?
Faith wants to retire in 35 years. She makes annual contributions to a Roth IRA in the amount of $3,950. She is taxed at 35% today, but anticipates that will change to 25% in her retirement. If the average annual rate of return on the account is 6.3%, what is the net value of Faith’s IRA account when she retires?

Question

Help please?
Faith wants to retire in 35 years. She makes annual contributions to a Roth IRA in the amount of $3,950. She is taxed at 35% today, but anticipates that will change to 25% in her retirement. If the average annual rate of return on the account is 6.3%, what is the net value of Faith’s IRA account when she retires?

anonymous · Answer

@ganeshie8 help please?

ganeshie8 · Answer

first find the accumulated amount in the account using `ordinary annuity` formula

ganeshie8 · Answer

$$FVOA =  C\bullet \dfrac{(1+i)^{nt}-1}{i}$$

ganeshie8 · Answer

seen this formula before ?