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I need help solving. Suppose you are a manager for a certain company, You earn $50,000 per year and are In the 282 federal income
I need help solving.
Suppose you are a manager for a certain company, You earn $50,000 per year and are In the 282 federal income tax bracket. Each year you contribute s4, soo tax free to your inflividual retirement account, IRA. The account eams Th annual interest. In addition, the amount of tax that you save each year by making these "pre tax" contribetions is imvested in a twatile aggressive growith mutual fund averaging 17%. (a) How much tax do yoa save (in 5 ) each year by makng the retirement fund contributions? (b) Using Table 12-1, much will the retirement fund be worth (in s) in 30 years? (Round your answer to the nnareot cent.) x (c) Athough the income from this irvestment is taxable each year, wsing fable 12-1, how much will the "tax savings" fund be worth (in s) in zo years? (kound your answer to the mearest cent?) Step by Step Solution
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