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John is trying to decide whether to contribute to a Roth IRA or a traditional IRA. He plans on making a $ contribution to whichever plan he decides to fund. He currently pays tax at a percent marginal income tax rate, but he believes that his marginal tax rate in the future will be percent. He intends to leave the money in the Roth IRA or traditional IRA for years, and he expects to earn a percent beforetax rate of return on the account.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.
b How much will John accumulate after taxes if he contributes to a traditional IRA consider only the funds contributed to the traditional IRA
After tax accumulation
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