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a. Somtene in the 15 percent tax bracket can earn 14 percent annually on his investments in a tax-exempt IRA account. What will be the
a. Somtene in the 15 percent tax bracket can earn 14 percent annually on his investments in a tax-exempt IRA account. What will be the value of a $20,000 irvestment in $ years? 10 years? 20 years? You may use Appendixc to arswer the questions. Do not round intermediate calculations. Round your answers to the nearest dallar. in 5 years: 5 in 10 years: $ in 20 years: $ b. Suppose the preceding 14 percent return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of his $20,000 investinent after 5,10 , and 20 years? Do not round intermediate calculations. Round your answers to the nearest daliar. in 5 years: 5 in 10 years: 5 in 20 years: 5
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