Financial Algebra help! :( Multiple choice

Question

anonymous · Answer

Literally ANY help would be MUCH appreciated, because I do not understand this at all! >_< 

Ashton made contributions to a Roth IRA over the course of 32 working years. His contributions averaged $2,400 annually. Ashton was in the 28% tax bracket during his working years. The average annual rate of return on the account was 8%. Upon retirement, Ashton stopped working and making Roth IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Ashton dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Ashton’s Roth IRA at retirement? Assume annual compounding.


A) $231,920.99
B) $300,608.49
C) $310,592.49
D) $330,608.49

anonymous · Answer

Well it isn't A.