An investor must decide between putting $2,000 into a regular retirement plan or putting $1,520 into...

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An investor must decide between putting $2,000 into a regular retirement plan or putting $1,520 into a Roth retirement plan. If the investor's tax rate is 24% now and in retirement, and she expects to earn 12% per year over the next 20 years, which will produce more cash in the end? An investor must decide between putting $2,000 into a regular retirement plan or putting $1,520 into a Roth retirement plan. If the investor's tax rate is 24% now and in retirement, and she expects to earn 12% per year over the next 20 years, which will produce more cash in the end?

Answer rating: 100% (QA)

To determine which option will produce more cash in the end we need to compare the aftertax values o... View the full answer