Question

Saida made contributions to a Traditional IRA over the course of 35 working years. Her contributions averaged $1,800 annually. Saida was in the 32% tax bracket during her working years. The average annual rate of return on the account was 4.5%. Upon retirement, Saida stopped working and making IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Saida dropped into the 20% tax bracket. Factoring in taxes, what is the effective value of Saida's Traditional IRA at retirement? Assume annual compounding.

Answer 1

so 35 working years with contribution averaged $1800 annually equal how much total mony ?