Consider the following scenario:-

The owner of the business for which you work wants to invest some money. They are unsure whether they should put the money in an investment account that pays 8% interest per annum for a six year term (reinvesting the interest) and have asked you to calculate the amount that they would get at the end of the investment.

They are investing their own money and the return(s) will be subject to income tax even though the money will not be withdrawn until the end of the investment period because it is paid annually. The amount to be initially invested is $500,000. The owner earns over $180,000 per year and is in the top tax bracket. This means they will pay tax at the maximum rate.

Using the provided information calculate the amount that the investment will return at the end of each period and the tax and Medicare levy that will be paid (to the nearest dollar) arising from the investment. Resident income tax rates to be used (not including Medicare) are shown. The Medicare levy is an additional 1.5%.

The income tax rates is the following table:-

Taxable income	Tax on this income
0-$18,200	Nil
$18,201-$37,000	19c for each $1 $18,200
$37,001-$80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c each $1 over $80,000
$180,001 and over	$54,550 plus 45c for each $1 over $180,000

Please calculate the interest earning and taxation for the next 6 year as follows:-

Year	Starting value	Interest income	Before tax amount	Less taxation	Less Medicare	Annual close
1
2
3
4
5
6

(Please consider this is in Australian taxation environment, and please type up your answer)