Answer:
A.
Explanation:
To find out how much Laura should invest monthly in her IRA to reach a balance of $310,000 in 15 years with a 5% interest compounded monthly, we can use the formula for the future value of an ordinary annuity:
FV = P * ((1 + r)^n - 1) / r
Where:
FV = Future Value (desired balance) = $310,000
P = Monthly investment
r = Monthly interest rate = 5% / 100% = 0.05 / 12 = 0.0041667
n = Number of periods = 15 * 12 = 180
Plugging these values into the formula, we have:
$310,000 = P * ((1 + 0.0041667)^180 - 1) / 0.0041667
Now, we can solve for P:
P = $310,000 * 0.0041667 / ((1 + 0.0041667)^180 - 1)
Calculating this expression, we find:
P ≈ $1,146.79