Question: 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.

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?

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