Question
Someone in the 36 percent tax bracket can earn 8 percent annually on her investments in a tax-exempt IRA account. What will be the value
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Someone in the 36 percent tax bracket can earn 8 percent annually on her investments in a tax-exempt IRA account. What will be the value of a one-time $19,000 investment in 5 years? 10 years? 20 years? 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: $
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Suppose the preceding 8 percent return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of her $19,000 investment after 5, 10, and 20 years? Do not round intermediate calculations. Round your answers to the nearest dollar.
in 5 years: $
in 10 years: $
in 20 years: $
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