Mathematics, 30.03.2021 04:10 idenneymarie
Laura has been contributing to a retirement account that pays 4% interest with pre-tax dollars. This account
compounds interest monthly. She has put $500 per month into the account. At the end of 10 years, she needed to pay some medical bills and had to withdraw 15% of the money that was in the account.
A. Rounded to the nearest dollar, how much did she withdraw?
B. Laura pays 23% of her income in taxes. What was her tax on the amount of the withdraw? Round to the nearest dollar.
C. She had to pay a 10% early withdrawal penalty on the amount she withdrew. How much was her penalty, rounded to the nearest dollar?
D. How much did this withdraw "cost" her?
Answers: 3
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