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Author Question: Vidya can invest $5,000 of after-tax dollars (AT$) directly in a taxable bond outside an IRA, or he ... (Read 64 times)

Yolanda

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Vidya can invest $5,000 of after-tax dollars (AT$) directly in a taxable bond outside an IRA, or he can contribute the $5,000 to a nondeductible IRA and invest in the same bond through the IRA vehicle. In either case the bond yields an annual 5% before-tax rate of return (BTROR). Vidya's marginal tax rate is 15%, and he expects it to remain so for the entire investment horizon of 20 years. What is the after-tax accumulation for the "bond inside the IRA" after 20 years?
◦ $12,027
◦ $11,277
◦ $10,062
◦ None of these.


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Marked as best answer by Yolanda on Sep 13, 2020

beccamahon

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Yolanda

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Reply 2 on: Sep 13, 2020
YES! Correct, THANKS for helping me on my review


momolu

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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