A graduate saves $475 at the end of each month in a Roth IRA for 40 years (retirement date), earning 8% annually.

How much money will be in the account at the end of 40 years, and how long will the money last if the graduate withdraws $15,000 at the end of each month at the retirement date, assuming the investments continue to earn 8% annually?

HINT: Once you calculate the FV of the savings, this will be your PV for the second part of the problem where you solve for N.

Group of answer choices

Value of account in 40 years = $1,658,229: Account will run out of money in 201 months.

None of the above.

Value of account in 40 years = $1,570,954: Account will run out of money in 180 months.

Value of account in 40 years = $1,404,396: Account will run out of money in 162 months.

Value of account in 40 years = $1,396,403: Account will run out of money in 145 months.