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arah, who is five years from retirement, receives a $ 1 0 , 0 0 0 bonus at work. She is trying to decide whether

arah, who is five years from retirement, receives a $10,000 bonus at work. She is trying to decide whether to save this extra income in an IRA account or in a regular savings account. Both accounts earn 3 percent nominal interest, and Sarah is in the 30 percent tax bracket in every year (including her retirement year).

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