Thursday

October 23, 2014

October 23, 2014

Posted by **peter** on Sunday, December 11, 2011 at 1:31pm.

1. How much money will remain after you pay the taxes at the age 60?

2. Suppose that instead of depositing the money into the IRA, you pay taxes on the money and the annual interest. How much money will you have at age 60? ( note: You effectively start with 1800(60% 3000) and the money earns 4.8%(60%of 8%) interest after taxes.

3. To the nearest dollar, how much additional money will you earn with IRA?

4. Suppose you pay taxes on the original %3000, but then able to earn 8% in a tax-free investment. Compare your balance at age 60 with the IRA balance.

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