Carolyn has been contributing $350 per month to a pre-tax retirement account since she graduated college at the age of 22.This account has been earning 7% compounded monthly.When she is 48,her youngest child is ready to start college,and Carolyn wants to withdraw 20% of the money in the account for tuition.Carolyn's tax bracket this year is 25%,and she knows she will have to pay a 10% early withdrawal penalty.How much money will she realize to pay for her child's tuition?

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The Answer of Carolyn has been contributing $350 per month to a pre-tax retirement account since she graduated college at the age of 22.This account has been earning 7% compounded monthly.When she is 48,her youngest child is ready to start college,and Carolyn wants to withdraw 20% of the money in the account for tuition.Carolyn's tax bracket this year is 25%,and she knows she will have to pay a 10% early withdrawal penalty.How much money will she realize to pay for her child's tuition?

Carolyn Has Been Contributing $350 Per Month to a Pre-Tax