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Savanna makes annual contributions in the amount $1500 on average to a traditional IRA. She wants to retire and 37 years. She is currently taxed in the 28% tax bracket but anticipates being taxed at 10% in her retirement years. If the average annual rate of return on her account is 6.5% what is the effective value of savannas traditional IRA account at retirement?( show work)

A= $192,710.13
B= $198,582.37
C= $473,646.99

1 Answer

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1,500×(((1+0.065)^(37)−1)
÷(0.065))=214,122.37

214,122.37−(214,122.37×0.10)
=192,710.13...answer
User Wachburn
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