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An Investor May Deposit $2,000 into a Traditional or Roth

Question 29

Multiple Choice

An investor may deposit $2,000 into a traditional or Roth IRA. After 30 years, given a 9% annual return and a 20% tax rate, how much more or less money will the investor have if all investments are liquidated after 30 years?


A) Roth value is $5,307 higher
B) Roth value is $4,907 higher
C) traditional value is $4,907 higher
D) traditional value is $5,307 higher

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