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

question 34

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

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Definitions:

Positive Reinforcement

A method of increasing the likelihood of a desired response by following it with a pleasant stimulus.

Digital System

An electronic system that processes data in a discreet manner, using a combination of hardware and software to perform computational tasks.

Monthly Awards

Recognitions or honors given out on a monthly basis to acknowledge exceptional performance, achievements, or contributions.

Negative Reinforcement

A concept in behavioral psychology where the removal of a negative condition strengthens or increases the likelihood of a response.