Question: Problem 2 - 0 3 Someone in the 1 5 percent tax bracket can earn 1 4 percent annually on his investments in a tax

Problem 2-03 Someone in the 15 percent tax bracket can earn 14 percent annually on his investments in a tax-exempt IRA account. What will be the value of a $18,000 investment in 5 years? 10 years? 20 years? You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: $ Suppose the preceding 14 percent return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of his $18,000 investment after 5,10, and 20 years? Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: $

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