Question

Jennilee made contributions to an IRA over the course of 40 working years. Her contributions averaged $5,000 annually. Jennilee was in the 33% tax bracket during her working years. The average annual rate of return on the account was 6.5%, bringing the value of the IRA to $878,159.58 by the time she retired. At this point, Jennilee stopped working and making IRA contributions, and instead started living on withdrawals from the retirement account. Jennilee dropped into the 28% tax bracket at retirement. What is the difference in the taxes Jennilee would pay on this account over time between a

Answer 1

$10,000.00

$43,907.98

$179,884.68

$233,792.66
* MY WORK *
http://www.wolframalpha.com/input/?i=FVOA%3D3000*%28%281%2B0.065%29%5E%281*40%29-1%29%29%2F%280.065%29

Answer 2

ayyy dats what I got to tho @NaCl

Answer 3

@lulu22 Twiiiinnnsssss ^_^

Answer 4

answer is A, $10,000.00