You will need a calculator for this problem. Sanchez earns $ 4,000, and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Sanchez can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option?
Answer to relevant QuestionsMost economists believe that a reduction in all statutory federal income tax rates in the United States would be unlikely to generate an increase in tax revenues. However, a recent study suggests that this might not be the ...The top marginal tax rate was lowered from 90 percent to 70 percent in 1964. Following this change, the number of annual championship boxing matches increased substantially [Fetter, 2010]. Explain this phenomenon using the ...Clausing  found that corporate tax revenues rise and then fall with increases in the corporate tax rate. She also found that “smaller, more open economies have lower revenue-maximizing tax rates than do larger or ...How would each of the following events affect the national debt as it is currently measured? a. The government borrows to finance a Memorial Day parade. b. The Statue of Liberty is sold to a group of private entrepreneurs. ...In January 2003, the late Professor David Bradford told a New York Times reporter that a consumption tax discourages work effort. Shortly thereafter, he received the following e- mail: “Since when is a tax on consumption a ...
Post your question