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:

Bandura

A psychologist known for his work on social learning theory, emphasizing the role of observational learning, imitation, and modeling in behavior.

Social Learning Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Reciprocal Determinism

Bandura’s term for the way people affect their environments even while their environments affect them.

Julian Rotter

An American psychologist known for developing social learning theory and the concept of locus of control.