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Mathematics, 19.10.2020 06:01 fahad7007

Lee started making contributions to a Traditional IRA when he got his first job, at age 28. His contributions averaged $2,900 annually. Lee was in the 30% tax bracket during his working years, when he continued to make these annual contributions. The average annual rate of return on the account was 5.7%. Upon retirement at age 71, Lee stopped working and making IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Lee dropped into the 20% tax bracket. Factoring in taxes, what is the effective value of Lee's Traditional IRA at retirement? Assume annual compounding

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