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Author Question: Elise contributes $1,000 to a deductible IRA. Her investment will earn 10% annually before taxes, ... (Read 56 times)

sam.t96

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Question 1

Earl invests $7,000 in a tax-exempt bond yielding 4% which matures in 15 years. What is Earl's after-tax accumulation at maturity?

Question 2

Elise contributes $1,000 to a deductible IRA. Her investment will earn 10% annually before taxes, and she will withdraw the accumulated amounts from the IRA after 20 years. She expects her tax rate to be 25% at that time and will not be subject to the 10% on early distributions. What is Elise's after-tax accumulation in the IRA?


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Marked as best answer by sam.t96 on Sep 13, 2020

cadimas

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sam.t96

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


flexer1n1

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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