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Jorge contributes $5,000 to a traditional nondeductible IRA in the current year and makes no subsequent contributions. Assume that the investment in the IRA yields
Jorge contributes $5,000 to a traditional nondeductible IRA in the current year and makes no subsequent contributions. Assume that the investment in the IRA yields 6% per year and that Jorge allows his investment to accumulate for 20 years. At the end of twenty years, he withdraws all of the amounts from the IRA when his marginal tax rate is 30%. What is his after-tax accumulation? (Show calculation)
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