1. Tax-Sheltered Returns. Timothy Clum, of Brookline, Massachusetts, is in the 25 percent tax bracket and is considering the tax consequences of investing $2000 at the end of each year for 30 years, assuming that the investment earns 8 percent annually.

(a) How much will the account total if the growth in the investment remains sheltered from taxes?

(b) How much will the account total if the investments are not sheltered from taxes? (Hint: Use Appendix A.3 or the Garman/Forgue companion website.)