Leon started making contributions to a Traditional IRA when he got his first job, at age 36. His contributions averaged $1,900 annually. Leon was in the 35% tax bracket during his working years, when he continued to make these annual contributions. The average annual rate of return on the account was 6.1%. Upon retirement at age 64, Leon stopped working and making IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Leon dropped into the 25% tax bracket. Factoring in taxes, what is the effective value of Leon’s Traditional IRA at retirement?

Question

anonymous · Answer

@annas @satellite73 @sleepyjess @damonte212 @mathmath333 @Haseeb96

anonymous · Answer

Leon started making contributions to a Traditional IRA when he got his first job, at age 36. His contributions averaged $1,900 annually. Leon was in the 35% tax bracket during his working years, when he continued to make these annual contributions. The average annual rate of return on the account was 6.1%. Upon retirement at age 64, Leon stopped working and making IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Leon dropped into the 25% tax bracket. Factoring in taxes, what is the effective value of Leon’s Traditional IRA at retirement? Assume annual compounding.
$122,607.14
$173,536.23
$86,013.62
$99,246.49

anonymous · Answer

@iGreen @triciaal @paki @King.Void. @k_lynn

triciaal · Answer

sorry, prefer to pass on this 
but the time is 64 - 34 = 30 yrs   interest at 6.1% per yr  Principal = 1900
might also need to look at future value of an annuity