Big Boi earns $4,000 and she wants to save it for retirement,which is 10 years away.She can either save it in a taxable account or put it into a Roth IRA.Suppose that Big Boi can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent.By the time she reaches retirement,how much money would she have in either option?
NOTE: Big Boi has to pay tax on the $4,000,so she cannot put the full amount into either the taxable account or the Roth IRA.

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The Answer of Big Boi earns $4,000 and she wants to save it for retirement,which is 10 years away.She can either save it in a taxable account or put it into a Roth IRA.Suppose that Big Boi can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent.By the time she reaches retirement,how much money would she have in either option?
NOTE: Big Boi has to pay tax on the $4,000,so she cannot put the full amount into either the taxable account or the Roth IRA.

Big Boi Earns $4,000 and She Wants to Save It