Elise contributes $1,000 to a deductible IRA. Her investment will earn 10% annually before taxes, and she will withdraw the accumulated amounts from the IRA after 20 years. She expects her tax rate to be 25% at that time and will not be subject to the 10% on early distributions. What is Elise's after- tax accumulation in the IRA?

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The Answer of Elise contributes $1,000 to a deductible IRA. Her investment will earn 10% annually before taxes, and she will withdraw the accumulated amounts from the IRA after 20 years. She expects her tax rate to be 25% at that time and will not be subject to the 10% on early distributions. What is Elise's after- tax accumulation in the IRA?

Elise Contributes $1,000 to a Deductible IRA