Someone in the 15 Percent Tax Bracket Can Earn 8

question 44

Multiple Choice

Someone in the 15 percent tax bracket can earn 8 percent annually on his investments in a tax-exempt IRA account. What will be the value of a $10,000 investment after five years (assuming annual compounding) ?

• A) $6,805
• B) $14,693
• C) $15,528
• D) $20,114
• E) $50,000

---

Definitions:

Battery

A device composed of one or more electrochemical cells that store and provide electrical energy through chemical reactions.

Voltage

The electric potential difference between two points in a circuit, which drives the current flow.

Conductors

Materials or objects that allow the flow of electrical current in one or more directions.

Amps

Short for amperes, a unit of measure for electrical current strength.