Personal Finance
Personal Finance
7th Edition
ISBN: 9780134989969
Author: Madura, Jeff
Publisher: Pearson,
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Chapter 17, Problem 7RQ
Summary Introduction

To discuss: The difference between load mutual funds and no-load mutual funds and the way load affects the returns and the reason why some investors buy load funds and the way the no load funds are purchased by the investors.

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Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for Ashley. For the current year, their AGI is $235,000. Jackson and Ashley each earned half of the income. Note: Leave no answers blank. Enter zero if applicable. b. How much can Ashley contribute if she files a separate return?
Desmond is 25 years old, and he participates in his employer's 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond's saver's credit in each of the following alternative scenarios? (Use Exhibit 13-8) Note: Leave no answer blank. Enter zero if applicable.   b. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $17,500.
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