Question

Cooper makes annual contributions in the amount of $3250 on average to a Roth IRA. He wants to retire in 28 years. He is currently taxed on the 35% tax bracket what anticipates being taxed at 25% in his retirement years. If the average annual rate of return on his account is 4.1% what is the net value of Cooper's Roth IRA account at retirement? (show work)

A= $41,229.31
B= $133,067.24
C= $142,167.24

Answer 1

3,250×(((1+0.041)^(28)−1)
÷(0.041))=164,917.24

164,917.24−(164,917.24×0.35)
=107,196.21..answer