Bridgette wants to retire 41 years from now. She decides to start saving $350 each month into a Roth IRA starting at the end of this month. If the IRA is expected to earn an average annual return of 13% compounded monthly, how much will she have in the account at the end of 41 years?

Answer with the following steps:

(i) Develop the timeline (linear representation of the timing of cashflows).

(ii) Identify the time value of money variable (PV, FV, PMT, N or Rate) which needs to be calculated in the question. 

(iii) Identify the values of the remaining four variables (PV, FV, PMT, N or Rate) from the question. Be sure to input positive or negative signs. 

(iv) Calculate the correct value of the variable identified.

Answer rating: 100% (QA)

ANSWER IS i Develop the timeline To develop the timeline we need to break down the information given ... View the full answer