1) A woman is in the 25% marginal tax bracket, and is considering the tax consequences of investing $2000 at the end of the year for 30 years in a tax-sheltered retirement account, assuming that the investment earns 8% annually. A) How much will her account total over 30 years 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? Use Appendix A-3 for both A and B 2) A married couple desire an annual retirement income of $40,000. They expect to live for 30 years past retirement. Assuming that the couple could earn a 3% after-tax and after-inflation rate of return on their investments, what amount of accumulated savings and investments would they need? Use Appendix A-4Table A.3 Future Value of a Series of Equal Amounts (an Annuity of $1 Paid at the End of Each Period) [Used to Compute the Compounded Future Value al a Stream al Income Paymenta) 6% 17% 16% 1 010 0 1 010 0 1 010 0 1 0 00 1.0100 10 010 1.01010 103 0 1.00 00 1.0100 1 00 00 10010 2030 2010 20100 2.1100 2.13010 2.1400 2.1500 2. 1600 2.1700 2. 1800 10101 10104 1 121 0 3.3100 1301 JIMI 404 41210 4.5041 40410 ASTIN 51010 5:30840 5.4103 T.0144 T. 15 47 T.ATTO T. 150 TFIE 1141:3 11. 7120 12. 1415 12 5EFF 12 51 12143 HIS 10 50 13 3 IMIF 12.1573 14:3401 147133 15:370 15908 10508 1120 114113 110780 12ABM 1302 10 135PM 141040 14787 154157 HOW 1952 120101 12 57 P 13 1808 13814 14 40 15. 193 1593M 11464 17.560 185313 18 5614 WORK 21.8143 1 150 12 12/0825 124121 14 1930 15058 159171 31 14OF 15 16069 17304 18 5 1 20 0208 215780 17 184104 20 0131 21 716 230175 IN 1GIAT 214133 2 30 320190 243174 318701 51. 1601 MNG MOOS S4OHS AND 443117 SL.113 2F 30 82014 35 3413 A-9Table A.4 Present Value of a Series of Equal Amounts (an Annuity of $1 Received at the End of Each Period) | Used to Compute the Discounted Present Value of a Stream of Income Paymenta) 6% 10% 14% 16% 18% 19% 09201 09124 0.9434 0.9346 0.9259 09174 0.9081 09004 08929 08850 0.8772 08696 0.4:21 08547 0.4175 0.8401 0.4333 19704 1.M416 1.905 1.8861 18944 1.4334 1.8080 1.7833 17591 1.7:345 17125 1.8401 16641 1.6-487 16257 1.8012 15893 1.856 15483 1.2378 20410 2 4839 3.7751 27232 36730 2 8243 3 5771 25313 24869 24437 24018 23612 2 3216 22832 2 3459 22006 21743 2.1398 2 1065 3.9020 3.4077 3.7171 3.8298 35460 3.4851 3.3472 3.3121 12397 3.1094 31024 30373 29745 29137 28550 27943 2 2743 20901 26346 2 5187 48934 4.7135 4.4797 4.4514 43294 4. 2124 4.1012 18897 3.7908 38949 3.6048 35172 34:331 13532 3:7743 3 1194 3 072 30476 29106 57945 5.80714 5.4172 5.2421 50757 4.9173 4.7065 44859 43513 42304 4.1014 39475 3.8847 37845 36147 35812 3.4976 3.40% 67283 6.4720 6.2303 6:0021 47864 5.5824 5.3893 5.2064 10330 4 8684 47132 4 5638 44326 4.2893 41604 4 0386 39231 3.8115 3.7057 78517 7 3255 70147 6.7307 64832 5.9713 5.7406 45348 5.3349 51461 4.9676 4 47948 4.6309 44873 4.3436 42072 4 0776 3:9544 3.8372 85660 8.1832 7.7861 7.4353 7.1078 6.1017 6.5192 8.2409 49942 5.7590 35370 5.3202 51317 49484 47716 48065 44506 4 3030 41633 40810 94713 8.9826 8.5302 8.1 109 7.7217 7:3601 7.0236 6.7101 64177 6.1416 58892 5.6502 54262 5.2181 50184 4 4332 4.4141 43349 4.1925 103676 9.7864 8.7605 8.3064 7.4869 7.4987 7.1390 68062 64951 62065 5.9377 56869 5.4527 52337 5.0286 48364 4:4560 4.4865 4.3271 11.2951 10.5753 9.9640 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 68137 64924 6.1914 59176 5.6603 54206 5.1971 49484 4.7932 4.6103 4.4392 121337 11.3484 10.6350 9.9898 9:3936 8.1427 8.3577 7.9038 7.4869 7.1034 67494 64235 61218 5.8424 35831 5.3423 51103 4.9095 47147 45327 130037 12 1062 11 2961 19.5631 9:8986 9.2950 8.7435 8.2402 7.7862 7:3687 69419 6.6382 63025 6:0021 57245 54875 52203 5.0081 4.8023 4.6106 138651 12 8493 11.9379 1.1184 103797 9.7132 9.1079 40607 76061 7.1904 6.8109 64624 6.1432 58474 5.5756 53242 5.0916 4.8759 4.6753 147179 13.5777 12 5601 11.6523 108378 10.1034 9.4486 43126 7.8237 73792 6.9740 66039 6.2041 59542 5.6895 54053 5.1824 4.9377 4.7296 155623 14 2919 13.1861 0.1697 11.2741 10.4773 9.7613 9.1206 49436 8 0216 75488 7.1096 67291 63729 60472 5.7487 54748 5.2323 49497 4.7746 163983 14 9820 13.7535 43 6523 116896 10 8276 10.0981 9.37W 87556 8.2014 7.7016 7 2497 68394 6.4674 61280 58178 35339 5 3732 5.03:33 4.8132 172260 15.6785 14.3234 03.13:34 120853 11.1341 10.3:356 9.6038 89501 8.3649 78393 7:3658 69380 655034 61982 5.4775 55845 5.3162 50703 48435 180456 18 3514 14.4775 13:5903 124832 11.4894 10.5910 9.8181 91285 85136 79633 7:4034 70248 6.6231 62593 5:3284 1 58270 5:3427 5.1009 4.9696 18.8570 17:0112 154150 14 0293 128212 11.7641 108:35 10.0168 92932 8.6497 80751 75630 7.1016 6.6570 63125 5.9731 5864 5.3937 5.1268 4.8913 198604 17.8680 015.9369 14.4511 131630 12 0416 11 0612 10.2007 84424 8.7715 81757 76446 7.1895 6.7429 63587 60113 56964 5.4094 9 5.148 49014 204558 18 2922 16.4436 14.8568 134886 12 3034 11 2722 10.3711 95802 8.8432 82664 7.7184 73297 6.7921 63908 60142 57234 5.4121 5.1668 4.245 212434 18.9139 16.9365 615.2470 137986 12:5504 114893 10.5284 97066 8.9647 83481 7.7843 72829 6.8:351 64338 6.0726 57406 5.4509 5.1822 4.9871 220232 19:5235 17401 19.6321 140939 12 7834 11.6536 10.6743 98326 9.0770 84217 7.8431 73300 6.8729 64841 6.0971 47683 5.4869 5.1981 4.9478 237932 20.1310 17 8764 15.9428 143752 130132 11838 1038103 19290 9.1609 84881 7.8967 73717 6.9031 64906 6.1182 57831 5.4804 5.2060 4.9563 235996 20.7069 18.3270 16.3296 146430 13.2106 11.9467 10.9353 100266 9.2372 85478 7.9426 74086 6.9:342 65135 60364 57975 5.4919 5.2151 4.9636 243164 21 2813 18.7641 18.6831 148941 13.4062 12.1371 1 11.0411 101161 9.3036 6 16016 7.9814 74412 6.9017 65335 6.1420 58093 95016 5.3238 4.9697 250658 21.8444 19.1895 16 9837 15 1411 13 5907 12 2777 11.1564 10 1943 9.3036 46501 8 0218 74701 6.9430 65509 6.1856 58204 5:5094 5.3293 4.9747 258077 23 3965 19.6034 17 2920 153725 137648 124030 11 2576 102737 9.4264 86938 80362 74937 7.0027 65660 6.1772 58294 5.5068 5.2347 4.9789 0328347 27:354 23.1 148 19.792 17.1591 15.0463 13.3317 11.9246 107574 9.7701 89411 8.2438 76344 7.1030 68418 6 2335 8703 5.5182 5.3503 4.9068 39.1961 31.4236 25.7294 21.4832 182559 15.7619 13.8037 3 23:35 109617 9.9148 90417 8.3045 76752 7.1:327 68606 6.3463 58801 5.5341 5.2633 4.9109 A-II