If the maximum payment of $5,000 is made into a Individual Retirement Account (IRA) for 25 years at an annual interest rate of 3.2%, determine the amount in the account.Round to the nearest cent.

Treat the $5,000 payments as annual deposits made at the end of each year. The future value of an ordinary annuity is $5,000 × [(1.032^25 − 1) ÷ 0.032], which is $187,159.62 rounded to the nearest cent. Therefore, the account will contain $187,159.62, choice A.

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