Amount earned Tax rate Amount you want to spend Rate of return you earn each year 32,060 15.0% 25,200 7.0% Plan A (Invest using after-tax dollars) (1) Figure out the amount to invest so that you can spend your desired amount. (2) Invest that amount and let it grow for 4 years. Be sure to tax the increase at the end of each year, including the last (4th) year. (3) Please compute the amount in your pocket" after the end of the 4th year. (Note: you can spend that amount since it is after-tax.) Plan B (Invest using pre-tax dollars) (1) Figure out the amount to invest so that you can spend your desired amount. (2) Invest that amount, and let it grow for 4 years. After the last (4th) increase, be sure to tax the full amount (3) Please compute the amount in your pocket" after the end of the 4th year. (Note: you can spend that amount since it is after-tax.) Please compare the "Step 3'amounts from each plan. How much more do you have from Plan B2 A Between 10 and 60 B Between 60 and 90 C Between 90 and 120 Between 120 at 150