Bill Plans to Fund His Individual Retirement Account (IRA) with the Maximum

Multiple Choice

Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent on his contributions, how much will he have at the end of the twentieth year?

A) $19,292
B) $14,938
C) $40,000
D) $144,104