An Individual in the 36% Tax Bracket Invests $5,000 in a Tax-Exempt

question 7

Multiple Choice

An individual in the 36% tax bracket invests $5,000 in a tax-exempt IRA.If the investment earns 10% annually,what will be the value of the IRA after five years?

• A) $6,600
• B) $6,818
• C) $7,500
• D) $8,053
• E) $10,879

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