Earl and Larry each begin full time jobs in January 2009 and plan to retire in January 2045 after working for 36 years. Each man is in a 20% marginal tax bracket. Assume that any money they deposited into IRAs earns 7% interest compounded annually. Answer:

Suppose Earl opens a Roth IRA account immediately. Earl deposits the remainder of $5000 after taxes are deducted into his account at the end of each year for 6 years. After that he makes no further deposits and lets the money earn interest. How much money will Earl have in his account when he retires in January 2045?