IRAs.
Ricky and Sharon married at age 22, started a family, and bought a house. At age 30, they began making a contribution of $4,000 to a traditional IRA. They continued making these contributions annually until age 60. If the average return on their investment was 8%, how much was in their IRA at age 60? What was their total investment?
2. Tax Savings. Lloyd and his wife, Jean, have no retirement plan at work, but they contribute $4,000 each year to a traditional IRA. They are in a 25% marginal tax bracket. What tax savings will they realize for these contributions annually?
IRAs.