Sylvia Makes a One- Time $2,000 Deductible Contribution into a Deductible

question 1567

Multiple Choice

Sylvia makes a one- time $2,000 deductible contribution into a deductible traditional IRA account, which will earn 8% annually before taxes. Twenty- five years later, at age 65, she withdraws all of the accumulation from the IRA when she is in the 15% marginal tax bracket. What is the total of her after- tax accumulated proceeds from the IRA?

• A) $8,541
• B) $6,000
• C) $13,697
• D) $11,642

---

Definitions:

Human Development Index

A composite statistic used to rank countries based on levels of human development factors like life expectancy, education, and per capita income.

Customer Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and service needs.

Final Goods

Products that are completed and ready for sale to the end consumer.

Gross National Product

The total value of all goods and services produced by a country's residents over a specific time period, including income from overseas investments.