Problem $2-04$

Activity Frame ne in the $36$ percent tax bracket can earn $9$ percent annually on her investments in a tax$-$exempt IRA account. What will be the real value of a one$-$

time $$18,000$ investment in $5$ years? $10$ years? $20$ years? Assume that the rate of inflation during all these periods was $3$ percent a year. You may use

Appendix $C$ to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar.

in $5$ years: $

in $10$ years: $

in $20$ years: $

b$.$ Someone in the $15$ percent tax bracket can earn $14$ percent annually on his investments in a tax$-$exempt IRA account. What will be the real value of a one$-$

time $$18,000$ investment in $5$ years? $10$ years? $20$ years? Assume that the rate of inflation during all these periods was $3$ percent a year. You may use

Appendix $C$ to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar.

in $5$ years: $

in $10$ years: $

in $20$ years: $