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Question 4 0/7 pts Suppose that you put $3,000 per year in a Roth IRA (Individual Retirement Account) at the end of each year. You plan to leave these contributions and any interest and dividends earned in the account (and will reinvest in the bonds and stocks that you hold in this IRA). Suppose that your investments earn 5.6% per year, compounded annually, what will your Roth account balance be at the end of 36 years?

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Answer #1

Calculation for Roth account balance at the end of 36 years.

Formula reference

C7 XFV(C4,C5,-C3,0,0) Yearly Contribution to IRA No. of Yearly contribution(year) RA account balance at end of 36th year 3000

Thus, Roth Account balance at the end of 36th year would be $ 327,349.02.

This amount can be withdrawn to reinvest in stocks and bond.

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