Suppose that you are going to save $1,000 of your income for one year,after which you will spend it along with any accumulated interest you earned.Assume that your marginal income tax rate is 50%.Consider the following two options:
Option 1: Invest in a regular savings account earning 10% interest.
Option 2: Invest in an IRA earning 10% interest.
Determine the after-tax value of your savings a year from now under both options.If the amounts are the same,explain why.If the amounts are different,explain why they are different.

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The Answer of Suppose that you are going to save $1,000 of your income for one year,after which you will spend it along with any accumulated interest you earned.Assume that your marginal income tax rate is 50%.Consider the following two options:
Option 1: Invest in a regular savings account earning 10% interest.
Option 2: Invest in an IRA earning 10% interest.
Determine the after-tax value of your savings a year from now under both options.If the amounts are the same,explain why.If the amounts are different,explain why they are different.

Suppose That You Are Going to Save $1,000 of Your