ignore drop down options! :-)
account, Rebecca wants to see how much her savings would earn using different investment tactics. (For assume there are no limitations or restrictions on her retirement contributions.) She asked you to help and provided the following information: She plans to invest 1,000 every year for 40 years. She has found an investment account that earns 5% per year. She is in a 20% income tax bracket. Interest Factors Years 2% Future Value of an Annuity 3% 4% 5% 10 10.9497 11.4639 12.0061 12.5779 11 12.1687 12.8078 14.2068 12 13.4864 15.0258 13.4121 14.1920 15.9171 13 14.6803 16.6268 15.6178 17.0863 17.7130 14 15.9739 18.2919 19.5986 15 16 17 18 19 20 21 22 17.2934 18.5989 20.0236 21.5786 18.6393 20.1569 21.8245 23.6575 20.0121 21.7616 23.6975 25.8404 21.4123 23.4144 25.6454 28.1324 22.8406 25.1169 27.6712 30.5390 24.2974 26.8704 29.7781 33.0660 25.7833 28.6765 31.9692 35.7193 27.2990 30.5368 34.2480 38.5052 28.8450 32.4529 36.6179 41.4305 30.4219 34.4265 39.0826 44.5020 32.0303 36.4593 41.6459 47.7271 33.6709 38.5530 44.3177 51.1135 35.3443 40.7096 47.0842 54.6691 37.0512 42.9309 49.9676 58.4026 38.7922 45.2168 52.9663 62.3227 40.5681 47.5754 56.0849 66.4389 50.4020 75.4013 95.0255 120.7995 24 25 26 27 28 29 30 Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to the nearest dollar. After-Tax Nonsheltered $1,000 Rebecca's Options Alter Tax Sheltered $1,000 Pretax Sheltered $1,000 40 Annual investment Number of years to invest Interest offered by account (as a %) Effective interest for Rebecca (as a %) Interest factor from table 40 40 5 5 5 $ $ S $ Accumulated over 40 years Invested over 40 years Income tax bracket (as a %) Income tax saved per year Income tax saved over 40 years 20 20 20 S $ $ $ $ Your findings Rebecca's friend's fondness for tax-sheltered accounts, because, according to this analysis, they effectively earn nonsheltered accounts. Using only the factors taken into account in this analysis, Rebecca concludes that the because it's the only one that would save her in income taxes every year account is the best, in part, Rebecca is tempted to use the money she would have sent to the IRS for fun but wants to know how much more she could earn if she put it toward her annual investment ist, she computes that her new annual investment would be $ Next, Rebecca applies the interest factor from the table of to reach an accumulated total of 3 Grade It Now Save & Continue Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to the nearest dollar. After-Tax Nonsheltered $1,000 Rebecca's Options Alter Tax Sheltered Annual investment Pretax Sheltered $1,000 $1,000 40 40 40 5 5 5 Number of years to invest Interest offered by account (as a %) Effective interest for Rebecca (as a %) Interest factor from table Accumulated over 40 years Invested over 40 years Income tax bracket (as a %) Income tax saved per year Income tax saved over 40 years $ S S $ 20 20 20 S $ S $ account, Rebecca wants to see how much her savings would earn using different investment tactics. (For assume there are no limitations or restrictions on her retirement contributions.) She asked you to help and provided the following information: She plans to invest 1,000 every year for 40 years. She has found an investment account that earns 5% per year. She is in a 20% income tax bracket. Interest Factors Years 2% Future Value of an Annuity 3% 4% 5% 10 10.9497 11.4639 12.0061 12.5779 11 12.1687 12.8078 14.2068 12 13.4864 15.0258 13.4121 14.1920 15.9171 13 14.6803 16.6268 15.6178 17.0863 17.7130 14 15.9739 18.2919 19.5986 15 16 17 18 19 20 21 22 17.2934 18.5989 20.0236 21.5786 18.6393 20.1569 21.8245 23.6575 20.0121 21.7616 23.6975 25.8404 21.4123 23.4144 25.6454 28.1324 22.8406 25.1169 27.6712 30.5390 24.2974 26.8704 29.7781 33.0660 25.7833 28.6765 31.9692 35.7193 27.2990 30.5368 34.2480 38.5052 28.8450 32.4529 36.6179 41.4305 30.4219 34.4265 39.0826 44.5020 32.0303 36.4593 41.6459 47.7271 33.6709 38.5530 44.3177 51.1135 35.3443 40.7096 47.0842 54.6691 37.0512 42.9309 49.9676 58.4026 38.7922 45.2168 52.9663 62.3227 40.5681 47.5754 56.0849 66.4389 50.4020 75.4013 95.0255 120.7995 24 25 26 27 28 29 30 Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to account, Rebecca wants to see how much her savings would earn using different investment tactics. (For assume there are no limitations or restrictions on her retirement contributions.) She asked you to help and provided the following information: She plans to invest 1,000 every year for 40 years. She has found an investment account that earns 5% per year. She is in a 20% income tax bracket. Interest Factors Years 2% Future Value of an Annuity 3% 4% 5% 10 10.9497 11.4639 12.0061 12.5779 11 12.1687 12.8078 14.2068 12 13.4864 15.0258 13.4121 14.1920 15.9171 13 14.6803 16.6268 15.6178 17.0863 17.7130 14 15.9739 18.2919 19.5986 15 16 17 18 19 20 21 22 17.2934 18.5989 20.0236 21.5786 18.6393 20.1569 21.8245 23.6575 20.0121 21.7616 23.6975 25.8404 21.4123 23.4144 25.6454 28.1324 22.8406 25.1169 27.6712 30.5390 24.2974 26.8704 29.7781 33.0660 25.7833 28.6765 31.9692 35.7193 27.2990 30.5368 34.2480 38.5052 28.8450 32.4529 36.6179 41.4305 30.4219 34.4265 39.0826 44.5020 32.0303 36.4593 41.6459 47.7271 33.6709 38.5530 44.3177 51.1135 35.3443 40.7096 47.0842 54.6691 37.0512 42.9309 49.9676 58.4026 38.7922 45.2168 52.9663 62.3227 40.5681 47.5754 56.0849 66.4389 50.4020 75.4013 95.0255 120.7995 24 25 26 27 28 29 30 Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to the nearest dollar. After-Tax Nonsheltered $1,000 Rebecca's Options Alter Tax Sheltered $1,000 Pretax Sheltered $1,000 40 Annual investment Number of years to invest Interest offered by account (as a %) Effective interest for Rebecca (as a %) Interest factor from table 40 40 5 5 5 $ $ S $ Accumulated over 40 years Invested over 40 years Income tax bracket (as a %) Income tax saved per year Income tax saved over 40 years 20 20 20 S $ $ $ $ Your findings Rebecca's friend's fondness for tax-sheltered accounts, because, according to this analysis, they effectively earn nonsheltered accounts. Using only the factors taken into account in this analysis, Rebecca concludes that the because it's the only one that would save her in income taxes every year account is the best, in part, Rebecca is tempted to use the money she would have sent to the IRS for fun but wants to know how much more she could earn if she put it toward her annual investment ist, she computes that her new annual investment would be $ Next, Rebecca applies the interest factor from the table of to reach an accumulated total of 3 Grade It Now Save & Continue Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to the nearest dollar. After-Tax Nonsheltered $1,000 Rebecca's Options Alter Tax Sheltered Annual investment Pretax Sheltered $1,000 $1,000 40 40 40 5 5 5 Number of years to invest Interest offered by account (as a %) Effective interest for Rebecca (as a %) Interest factor from table Accumulated over 40 years Invested over 40 years Income tax bracket (as a %) Income tax saved per year Income tax saved over 40 years $ S S $ 20 20 20 S $ S $ account, Rebecca wants to see how much her savings would earn using different investment tactics. (For assume there are no limitations or restrictions on her retirement contributions.) She asked you to help and provided the following information: She plans to invest 1,000 every year for 40 years. She has found an investment account that earns 5% per year. She is in a 20% income tax bracket. Interest Factors Years 2% Future Value of an Annuity 3% 4% 5% 10 10.9497 11.4639 12.0061 12.5779 11 12.1687 12.8078 14.2068 12 13.4864 15.0258 13.4121 14.1920 15.9171 13 14.6803 16.6268 15.6178 17.0863 17.7130 14 15.9739 18.2919 19.5986 15 16 17 18 19 20 21 22 17.2934 18.5989 20.0236 21.5786 18.6393 20.1569 21.8245 23.6575 20.0121 21.7616 23.6975 25.8404 21.4123 23.4144 25.6454 28.1324 22.8406 25.1169 27.6712 30.5390 24.2974 26.8704 29.7781 33.0660 25.7833 28.6765 31.9692 35.7193 27.2990 30.5368 34.2480 38.5052 28.8450 32.4529 36.6179 41.4305 30.4219 34.4265 39.0826 44.5020 32.0303 36.4593 41.6459 47.7271 33.6709 38.5530 44.3177 51.1135 35.3443 40.7096 47.0842 54.6691 37.0512 42.9309 49.9676 58.4026 38.7922 45.2168 52.9663 62.3227 40.5681 47.5754 56.0849 66.4389 50.4020 75.4013 95.0255 120.7995 24 25 26 27 28 29 30 Using the previous table, complete the following table to show Rebecca the effect of different options that are available to her. Round your answers to
