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Calculate the benefit for an investor from tax deferral of investment returns by investing in a tax-deferred savings plan (e.g., life insurance policies) versus investing
Calculate the benefit for an investor from tax deferral of investment returns by investing in a tax-deferred savings plan (e.g., life insurance policies) versus investing in a nontax-deferred savings plan. The investment (i.e. premium payment) is $1,000. Before-tax rate of return is 12 percent. The marginal tax rate the investor faces is 34 percent. The investment period is 15 years. (Round to the nearest dollar when calculating your answer.)
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