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ames deposited $5,000 into a traditional IRA this year. He expects his account will earn an average annual rate of 9%, and e plans to withdraw the money in 33 years. His current income tax rate is 28%, but he anticipates that his income tax rate vill be 25% when he withdraws the money. How much will James save in income taxes this year? Group of answer choices

ames deposited $5,000 into a traditional IRA this year. He expects his account will earn an average annual rate of 9%, and e plans to withdraw the money in 33 years. His current income tax rate is 28%, but he anticipates that his income tax rate vill be 25% when he withdraws the money. How much will James save in income taxes this year? Group of answer choices

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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James deposited $5,000 into a traditional IRA this year. He expects his account will earn an average annual rate of 9%, and he plans to withdraw the money in 33 years. His current income tax rate is 28%, but he anticipates that his income tax rate will be 25% when he withdraws the money. How much will James save in income taxes this year? Group of answer choices
Transcribed Image Text:James deposited $5,000 into a traditional IRA this year. He expects his account will earn an average annual rate of 9%, and he plans to withdraw the money in 33 years. His current income tax rate is 28%, but he anticipates that his income tax rate will be 25% when he withdraws the money. How much will James save in income taxes this year? Group of answer choices
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