An Individual in the 15 Percent Tax Bracket Has $10,000

Multiple Choice

An individual in the 15 percent tax bracket has $10,000 invested in a tax-exempt IRA account. If the individual earns 8 percent annually before taxes and inflation is 2.5 percent per year, what is the real value of the investment in 20 years?

A) $23,211
B) $28,467
C) $29,178
D) $37,276
E) $46,610