Laura has been contributing to a retirement account that pays 4% interest with pre-tax dollars. This account compounds interest monthly. She has put $500 per month into the account. At the end of 10 years, she needed to pay some medical bills and had to with- draw 15% of the money that was in the account.
a. Rounded to the nearest dollar, how much did she withdraw? b. Laura pays 23% of her income in taxes. What was her tax on the amount of the withdrawal (rounded to the nearest dollar)?
c. She had to pay a 10% early withdrawal penalty. How much was she required to pay, rounded to the nearest dollar?