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John Johnson begins contributions $ 4,000 into his Rota IRA on his 20 birthday. He plans to contribute $ 4,000 each year until he becomes
John Johnson begins contributions $ 4,000 into his Rota IRA on his 20 birthday. He plans to contribute $ 4,000 each year until he becomes 55 years old (35 deposits). Mr Johnson plans to wait until he is 65 (10 more years) before starting to take distributions. If his account earns 6% annual interest each year,
a) what is the value of his Roth IRA at the age of 55?
b) What is the value of his Roth IRA at the age of 65?
c) If he continues to earn 6% on his account, what is the maximum amount of his monthly distribution for the next 20 years?
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