Question
A person makes a $5500 contribution to a Traditional IRA. The person invests the tax savings. Both the IRA contribution and tax savings grow at
A person makes a $5500 contribution to a Traditional IRA. The person invests the tax savings. Both the IRA contribution and tax savings grow at 8% tax deferred, i.e., the tax savings is invested in a pure growth asset. What is the after-tax future value of these investments in 22 years? The tax rate is 28%.
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Multinational Financial Management
Authors: Alan C. Shapiro
7th Edition
0471395307, 9780471395300
