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Check my work 4 Individual retirement accounts (IRAs) were established by the U.S. government to encourage saving. An individual who deposits part of current earnings in an the does not have to pay income taxes on the earnings deposited. 0.62 income tax rate . withdrawn from the IRA , the full amount withdrawn is treated as income and is taxed at the individual's current In contrast, an individual depositing in a non-IRA account has to pay income taxes on the funds deposited and o xes on withdrawals from the IRAs that is different from a standard savings account is that funds deposited in an IRA cannot be withdrawn prior to retirement, except upon payment of a substantial penalty. a. Sarah, who is five years from retirement, receives a $10,000 bonus at work. She is trying to decide whether to save this extra income in Sarah is in the 30 account of in a regular savings account. Both acciomantive Compare the amounts that Sarah will have in five years under each of the two saving strategies, net of all taxes. Is the IRA a good deal for Sarah? Instructions: Enter your responses rounded to the nearest dollar Sarah invests in the IRA, her ne e: $ Ing her taxes) five years from now will Sarah invests in the normal savings account, her net value (after taxes) five years from now will be: $ 5 national saving rate. n each part that follows, use the economic data given to find national saving, private saving, public saving, and the 0.62 paints . Household saving = 200 Busin 1= 400 Skipped Government purchases of goods and services - 260 Government transfers and interest payments = 135 Tax collections - 245 GDP = 3,000 Instructions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers. National saving Private saving Public saving National saving rate b. GDP = 6,400 Tax collections - 1,925 Government transfers and interest payments = 400 Consumption expenditures = 4,570 Government budget surplus = 100 structions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers. National saving Private saving Public saving National saving rate c. Consumption expenditures = 4,800 Investment = 1,000 Government purchases = 1,000 Net exports = 16 Tax collections = 1,700 Government transfers and interest payments = 500 nstructions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers. National saving Private saving Public saving National saving rate 6 ational saving rate. n each part that follows, use the economic data given to find national saving, private saving, public saving, and the 0.62 . Household saving = 200 Business saving = 400 Government p oods and services = 200 Government transfers and interest payments = 120 e Book Tax collections = 215 GDP = 2,700 nstructions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers National saving Private saving Public saving National saving rate b. GDP = 6,250 Tax collections = 1,625 Government transfers and interest payments = 400 Consumption expenditures = 4,540 Government budget surplus = 100 ions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers. National saving Private saving Public saving National saving rate . Consumption expenditures = 4,500 Investment = 1,000 Government purchases = 1.000 Net exports = 10 lections = 1,625 Government transfers and interest payments = 500 nstructions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers. National saving Private saving Public saving National saving rate