Question 1: Someone in the 36 percent tax bracket can earn 9 percent annually on her investment in a tax-exempt IRA account. What will be the value of a one time $10,000 investment in 5 years? 10 years? 20 years?
Question 2: Suppose the preceding 9 percent is taxable rather then tax-deferred and the taxes are paid annually. What will be the the after-tax value of her $10,000 investment after 5, 10, 20 years?