please help!
Yon made contributions to a Traditional IRA over the course of 15 working years. Her contributions averaged $4,000 annually. Yon was in the 29% tax bracket during her working years. The average annual rate of return on the account was 5%. Upon retirement, Yon stopped working and making IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Yon dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Yon’s Traditional IRA at retirement? Assume annual compounding.

$74,230.25

$25,031.13

$73,367.11

$141,367.11

Question

please help!
 Yon made contributions to a Traditional IRA over the course of 15 working years. Her contributions averaged $4,000 annually. Yon was in the 29% tax bracket during her working years. The average annual rate of return on the account was 5%. Upon retirement, Yon stopped working and making IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Yon dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Yon’s Traditional IRA at retirement? Assume annual compounding.

$74,230.25

$25,031.13

$73,367.11

$141,367.11

anonymous · Answer

I don't know the answer, but I can ask a few questions that may help you figure it out:
1. Does the effective value of Yon's IRA mean to include the amount of taxes not paid due to the lower tax bracket at retirement?
2.Is the rate of return the value of the IRA + 5%?

anonymous · Answer

I can't figure it out either thats why i am asking

anonymous · Answer

Sorry, that's the best I can do. If you don't have a textbook to explain the terms "effective value" and "rate of return" perhaps Google can find the answer for you.