If Your Parents Put $2,000 a Year into an IRA

Multiple Choice

If your parents put $2,000 a year into an IRA account for you in each of your last 4 teenage years (age 16,17,18, and 19) , how much would the IRA account have in it at your retirement 45 years later if the account earned 12% each year? (Assume end-of-year payments.)

A) $1,567,455
B) $68,613
C) $3,457,169
D) $1,148,958