An Individual in the 15% Tax Bracket Has $10,000 Invested

question 61

Multiple Choice

An individual in the 15% tax bracket has $10,000 invested in a tax-exempt IRA account.If the individual earns 8% annually before taxes and inflation is 2.5% per year,what is the real value of the investment in 20 years?

• A) $23,211
• B) $28,467
• C) $29,178
• D) $37,276
• E) $46,610

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Definitions:

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the rest of the body.

Sphygmomanometer

A tool designed for blood pressure assessment, featuring a cuff that can be inflated to constrict blood flow, along with a manometer to gauge the pressure.

Systolic Blood Pressure

The top number in a blood pressure reading, indicating the pressure in the arteries when the heart beats.

Inefficient Contraction

Inadequate tightening or shortening of muscle fibers, often referring to the heart muscle, which impairs the heart's ability to pump blood effectively.