I need serious help with this homework. I don't understand the logic.

Type your name here------> Points earned --> 50 Read the instructions and hints before attempting to complete the solution. Enter your responses and answers in the areas specified. There are 50 total points for this assignment. The point value of each exercise is determined by dividing the 50 points by the number of exercises per assignment. If you have difficulty with any of the exercieses, take advantage of the collaboration discussion forum. Workshop 2 3 Returns on alternative saving vehicles 4, 5 4 Choosing the optimal organizational form 1, 3 Chapter 3 points possible 12 Exercise 4 deductions Points earned 12 4. Suppose a taxpayer, when 25 years old, made one tax-deductible $2,000 contribution of her after-tax salary to a deductible IRA. Her investment (taxable corporate bonds) earned a 12% annual return, and she liquidates the investment 10 years later when she retires. Her tax rate is 35%, but she must pay an additional 10% excise tax because she liquidates the IRA before she reaches the age 59.5. a. After taxes, how much cash does she have when she liquidates the IRA? b. Was it a mistake for the taxpayer to have set up an IRA? What would she have earned had she invested her after-tax salary in the taxable corporate bonds directly instead of through an IRA? a. Note, the taxpayer deposits $2,000 into the pension which is tax deductible implying a pretax contribution of contribution x (1- current Tax rate = pretax contributio. To earn points you must show your formula below> 2000(1-35%)=1300