Solve the problem.
-Find the final value, after all taxes are paid, for the following retirement account. Assume that taxes are not deferred and that deposits are made at the end of each year. $\begin{array} { l c } \text { Marginal tax rate: } & 28 \% \ \text { Regular deferred contribution: } & \$ 2500 \ \text { Annual rate of return: } & 5 \% \end{array}$
$\begin{array} { l c } \text { Annual rate of return: } & 5 \% \ \text { Number of years: } & 10 \end{array}$

Question

Quizplus · Accepted Answer

The correct answer is A because the final value after all taxes are paid is $21,214.36. This is calculated by taking the regular deferred contribution of $2500 and multiplying it by the annual rate of return of 5% for 10 years. The result is $27,500. This is then multiplied by the marginal tax rate of 28%, which results in $7,685. This is then subtracted from the $27,500 to get the final value of $21,214.36.

Solve the Problem Annual rate of return: 5% Number of years: 10\begin{array} { l c } \text { Annual rate of return: } & 5 \% \\ \text { Number of years: } & 10 \end{array} Annual rate of return: Number of years: ​5%10​

Solve the Problem $\begin{array} { l c } \text { Annual rate of return: } & 5 \% \\ \text { Number of years: } & 10 \end{array}$