Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $13,200 to the Roth IRA ($4,40
0 a year). The current value of the roth IRA is $18,350. In the current year, Sherry withdraws $16,000 of the account balance to purchase a car. Assuming Sherry is in a 25 percent marginal tax bracket, how much of the $16,000 withdrawal will she retain after taxes to fund her car purchase?Amount of withdrawal __________ ?Non-taxable amount __________ ?Amount subject to tax __________ ?tax rate ________ ?penalty rate __________ ?tax _________ ?penalty _________ ?after tax withdrawal retained ____________ ?
1 answer:
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Answer:
Simple rate of return is 5.8%
Therefore option (a) is correct option.
Explanation:
It is given that purchase cost = $793800
Company saving per year = $133000
Yielding = $21200
Annual depreciation = $88200
Annual profit = $133000 - $88200 = $44800
Net investment is equal to = $793800 - $21200 = $772600
Simple rate of return
= 5.8%
Therefore simple rate of return is 5.8 %
So option (a) is correct.