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Mathematics, 18.04.2021 03:10, Adeenieweenie
Kevin made contributions to a Roth IRA over the course of 40 working years. His contributions averaged $3,000 annually. Kevin was in the 25% tax
bracket during his working years. The average annual rate of return on the account was 7%. Upon retirement, Kevin stopped working and making Roth
IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Kevin dropped into the 15% tax bracket
Factoring in taxes, what is the effective value of Kevin's Roth IRA at retirement? Assume annual compounding. (3 points)
b
$449,179.01
$568,905.34
$580,905.34
d
$586,905.34
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Answers: 2
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