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Unformatted text preview: 63.0 112,200 25 28,100 2,080 7.4 26,020 92.6 0 25 year 8% mortgage on a $300,000 house : distribution of payments VALUE OF A TAX DEFERRED SAVINGS PLAN FOR RETIREMENT (an IRA). Starting at age 29, if you invest $2000 in an IRA yielding 10%, what cash flow can you expect at retirement ? 3/1/11 Alternatively Suppose you invested in an ordinary savings account and your tax rate during your working years is 50%. How would the above analysis change? What annuity can you expect to fund at retirement? Analysis Analysis continued The advantage to tax free compounding SUMMARY IRA Savings Account Balance at Retirement $542,049 $90,320 AfterTax Annuity $44,568 $8,526...
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This note was uploaded on 02/28/2011 for the course FIN 300 taught by Professor Olander during the Spring '08 term at ASU.
 Spring '08
 Olander
 Interest, Interest Rate

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