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An Investor Must Decide Between Putting $2,000 into a Regular

Question 54

Multiple Choice

An investor must decide between putting $2,000 into a regular IRA or put $1,440 into a Roth IRA.If the investor's tax rate is 28% now and in retirement,and she expects to earn 12% per year over the next 20 years,which will produce more cash in the end?


A) The investment in the regular IRA
B) The investment in the Roth IRA
C) Both investments will have the same future value after taxes
D) There is not information to determine which will produce the most cash

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