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

question 47

Multiple Choice

An individual in the 15 percent tax bracket has $10,000 invested in a tax-exempt IRA account. If the individual earns 8 percent annually before taxes and inflation is 2.5 percent 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:

Environmental Changes

Alterations in the external surroundings that can impact ecosystems, human societies, and the global climate.

Temperament

The aspect of an individual's personality that is believed to be biologically based and relatively stable throughout life, influencing behaviors and ways of reacting to the environment.

Perceptual Information

Information processed by the brain that comes from one's senses, influencing perception of the environment.

Inhibited

A psychological or behavioral state where a person is restrained in their actions or reactions.