A 25 year old taxpayer has $1,800 of after-tax income that she wishes to invest for 10 years. She is trying to decide between a deductible IRA invested in corporate bonds and an after-tax investment in the same corporate bonds. Her tax rate is 10% (compare to 30% in the previous question) for the entire period and she will have to pay an additional 10% tax penalty (40% in total) if she takes an IRA distribution before age 59.5. The returns on the corporate bonds would be 10% with either investment. She would invest the tax savings from the IRA into the IRA investment (principal IRA > principal non-IRA). What is the difference between the after-tax returns from