1. Rework Exercise 5 for a Roth IRA.
Refer in Exercise 5,
If you are 18 years old, deposit $5000 each year into a traditional IRA for 52 years, at 6% interest compounded annually, and retire at age 70, how much money will be in the account upon retirement?
2.
Rework Examples 1 and 3 for the case where the marginal tax bracket is 30% when the money is contributed but rises to 35% when the balance is withdrawn. Which type of IRA is most advantageous?