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If you are age 25, single, wage income of $50,000, 401(k) at work, and invest $1,000 into a Roth IRA, what is your spending power
If you are age 25, single, wage income of $50,000, 401(k) at work, and invest $1,000 into a Roth IRA, what is your spending power at age 70? Assume your tax rate now is 15%, your tax rate in retirement is 20%, and the pretax annual return on the investment is 5%.
a.) $7,188
b.) $7,637
c.) $8,985
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