You put $6,500 into a Roth IRA and invest everything in acorporate bond fund. The fund has an annual expense ratio of1.5%. Your expected annual return is 8.5%, your current tax rateis 35%, and you expect your tax rate in retirement to be 25%.The long-term capital gains rate is 15% and the short-termcapital gains rate is 35%. What is the after-tax future value ofyour investment in 20 years?

n=20 r=8.5-1.5=7/100=0.07 Present value=6500

Answered: You put $6,500 into a Roth IRA and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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