Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, Can you please explain how the numbers were found in this table for the following columns: -Dollars invested per year -Approximate Future Value at
Hello,
References sign Layout Mailings Review View Help Impression SignNow Picture Format o 11 - A A A A - X XA 2A- Normal No Spacing Heading Editing Dictate 21 Font Voice Paragraph Styles Establishing an Investment Plan to Meet a Specified Goal of $5,249,000 in 40 Years 8 (1) (2) (3) (5) Approximate Future Approximate Future Value at Age 65 of Tax-Deductible Value at Age 65 of Investment Dollars Dollar Contributions Retirement Plan Dollars Invested at 6%, after Taxes, to Retirement Dollars at 8%, before Age per Year per Year Plan per Year Taxes, per Year 26-30 $ 2,000 $ 87,000 $ 8,000 $ 694,000 31-35 6,000 194,000 12,000 708,000 36-40 10,000 242,000 16,000 643,000 41-45 15,000 271,000 20,000 547,000 46-50 25,000 465,000 51-55 30,000 303,000 30,000 380,000 56-60 35,000 264,000 30,000 259,000 61-65 35,000 197,000 30,000 176,000 Total accumulation $1,558,000 $3,872,000 Grand total of dollars accumulated through individual savings and retirement plan = $1,558,000 + $3,872,000 -$5,430,000 Assumes an investor who is 25 years old and who anticipates investing money to earn 6 percent, after taxes, per year for the next 10 years on personal investments, and to earn 8 percent per year on investments in the company retirement plan All entries are rounded to the nearest $1,000 Drocul Prediction on References sign Layout Mailings Review View Help Impression SignNow Picture Format o 11 - A A A A - X XA 2A- Normal No Spacing Heading Editing Dictate 21 Font Voice Paragraph Styles Establishing an Investment Plan to Meet a Specified Goal of $5,249,000 in 40 Years 8 (1) (2) (3) (5) Approximate Future Approximate Future Value at Age 65 of Tax-Deductible Value at Age 65 of Investment Dollars Dollar Contributions Retirement Plan Dollars Invested at 6%, after Taxes, to Retirement Dollars at 8%, before Age per Year per Year Plan per Year Taxes, per Year 26-30 $ 2,000 $ 87,000 $ 8,000 $ 694,000 31-35 6,000 194,000 12,000 708,000 36-40 10,000 242,000 16,000 643,000 41-45 15,000 271,000 20,000 547,000 46-50 25,000 465,000 51-55 30,000 303,000 30,000 380,000 56-60 35,000 264,000 30,000 259,000 61-65 35,000 197,000 30,000 176,000 Total accumulation $1,558,000 $3,872,000 Grand total of dollars accumulated through individual savings and retirement plan = $1,558,000 + $3,872,000 -$5,430,000 Assumes an investor who is 25 years old and who anticipates investing money to earn 6 percent, after taxes, per year for the next 10 years on personal investments, and to earn 8 percent per year on investments in the company retirement plan All entries are rounded to the nearest $1,000 Drocul Prediction on Can you please explain how the numbers were found in this table for the following columns:
-Dollars invested per year
-Approximate Future Value at Age 65 of Investment Dollars at 6%, after Taxes, per Year
-Tax-Deductible Dollar-Contributions to Retirement Plan per Year
-Approximate Future Value at Age 65 of Retirement Plan Dollars at 8%, before Taxes, per Year
Please and Thank you.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started