Vidya Can Invest $5,000 of After- Tax Dollars (AT$) Directly

Vidya can invest $5,000 of after- tax dollars (AT$) directly in a taxable bond outside an IRA, or he can contribute the $5,000 to a nondeductible IRA and invest in the same bond through the IRA vehicle. In either case, the bond yields an annual 5% before- tax rate of return (BTROR) . Vidya's marginal tax rate is 15%, and he expects it to remain so for the entire investment horizon of 20 years. What is the after- tax accumulation for the "bond inside the IRA" after 20 years?

A) $10,062
B) $11,277
C) $12,027
D) None of the above.