Question

Lee started making contributions to a Traditional IRA when he got his first job, at age 28. His contributions averaged $2,900 annually. Lee was in the 30% tax bracket during his working years, when he continued to make these annual contributions. The average annual rate of return on the account was 5.7%. Upon retirement at age 71, Lee stopped working and making IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Lee dropped into the 20% tax bracket. Factoring in taxes, what is the effective value of Lee's Traditional IRA at retirement? Assum

Answer 1

wats the chooses

Answer 2

a. $441,405.34
b. $400,703.58
c. $151,480.27
d. $350,615.64

Answer 3

ima say C.

Answer 4

could you explain why?

Answer 5

sure

Answer 6

\[28\div2,900\]

Answer 7

put it in internet

Answer 8

then round it

Answer 9

Oh o-o I thought it was more complicated than that? but i guess not

Answer 10

lol

Answer 11

http://www.wolframalpha.com/input/?i=%282900*%28+%28%281%2B0.057%29%5E%2871-28%29-1%29%2F%280.057%29+%29%29*%281-.2%29

Answer 12

you should get that after cutting out taxes ^

Answer 13

okay thank you ^_^