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Mathematics, 20.04.2021 07:40 MadisonElle
You put $6,000 in a traditional IRA account this year that earns 3% interest compounded monthly. You are currently in the 12% federal income ax bracket. You keep you money in the bank for 25 years. After 25 years, you make much more money per year so you are in the 24% federal income tax bracket.
a. Calculate the balance in you Traditional IRA in 25 years.
b. How much tax will you pay when you withdraw you money in 25 years?
c. If you had put your $6,000 in a Roth IRA instead, how much tax would you have paid when you deposited it?
d. How much less tax would you have paid by using a Roth IRA?
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You put $6,000 in a traditional IRA account this year that earns 3% interest compounded monthly. You...
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