Question

Can someone help me figure out a finance problem?

Answer 1

Jemma made contributions to an IRA over the course of 30 working years. Her contributions averaged $10,000 annually. Jemma was in the 28% tax bracket during her working years. The average annual rate of return on the account was 4.5%, bringing the value of the IRA to $610,070.70 by the time she retired. At this point, Jemma stopped working and making IRA contributions, and instead started living on withdrawals from the retirement account. Jemma dropped into the 21% tax bracket at retirement. What is the difference in the taxes Jemma would pay on this account over time between a Traditional and Roth IRA?

Answer 2

I got 518,560.09 for the Roth IRA but 91,510.61 is not an answer choice

Answer 3

no but you're sexy

Answer 4

Thank you

Answer 5

X)

Answer 6

im sorry and both of you are sexy btw...

Answer 7

Thank you also

Answer 8

it is a hard one

Answer 9

your good at these pj

Answer 10

lol not on this one @JAMIE<3you

Answer 11

To calculate a Roth IRS, you basically calculate the tax on the first figure you got for the Traditional IRA by multiplying it by either 21% or 28% and the amount of years then you minus that and subtract the final figure from the Traditional IRA. I tried 21%, 28%, and 15% and can't get an answer even close to my answer choices

Answer 12

I might be doing this horrendously wrong but I'm not quite sure

Answer 13

im trying to figure this one out

Answer 14

Roth IRA, sorry and thank you @Marco,Phillip :)

Answer 15

44,114.85 so just hitting different numbers this is what i got

Answer 16

Can you help me make sense of it please?

Answer 17

i wish i could but @CGGURUMANJUNATH can i think

Answer 18

It's okay. If push comes to shove, I'll have my teacher explain it. Thank you again :)

Answer 19

no problem sorry i couldnt help =<

Answer 20

You did :)

Answer 21

well that makes me feel better

Answer 22

Good :)

Answer 23

if you ever wanna talk mesg me.