Question: Lucas does not convert her IRA. He invests his IRA in a mutual fund targeted to earn 10% per year. He invests his cash account

Lucas does not convert her IRA. He invests his IRA in a mutual fund targeted to earn 10% per year. He invests his cash account in a money market fund earning 2.5% per year. When he hits age 60, he decides to convert her IRA to a Roth IRA.

Compute his after-tax spending power at this point (assume his tax bracket is the same).

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