7. When opening an IRA account, investors have two options. With a regular IRA account, funds added...
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7. When opening an IRA account, investors have two options. With a regular IRA account, funds added are not taxed initially, but are taxed when with- drawn. With a Roth IRA, the funds are taxed ini- tially, but not when withdrawn. If an investor wants to contribute $15,000 before taxes to an IRA, what will be the difference after 30 years between the two options? Assume that the investor is currently in the 25% tax bracket, and that the IRA will earn 6% per year.
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Related Book For 
Financial Markets and Institutions
ISBN: 978-0321280299
5th edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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