I have attached Q1.A

Your employer offers a 401k that you can invest in as an employee of the firm. If you put in 3% of your pre-tax income (listed in question 1.a.), your employer will match 3%. a. Assuming you put in the full 3% during your first year of employment, how much will your take home pay be 2. reduced? In other words, what is the difference between your take-home pay without the 401k contribution (from part 1.b.iv.) and your take-home pay after a 401k contribution? b. How much will you have saved in total in your 401K account for the year (counting your employer contribution and your contribution)? Assume now that you earn 8% per year on your total contribution (from part 2 b.. how much will that one year of savines grow into after 40 more years? c. How much would the account be worth if you contribute 3% per year, and your employer matches 3%, for 40 years (assuming you earn the same salary and 8% return)? Consider this question separately from part c. d. Now, assume you are instead given a $500,000 investment portfolio when your grandmother dies. Rather than working, you decide to invest the assets using your extensive investment knowledge gained during your time at NAU. You manage your portfolio carefully, earning a return of 8% each year (all long-term capital gains. a. Based on a capital gains rate of 15%, how much money will you have to live on each year after tax (assuming you 3. do not touch the $500,000 in principal)? b. What is your average tax rate? c. What is your marginal tax rate