Income Bracket $0-$12.500 $12,500-$39,000 $39,000-$58,500 $58,500-$110,000 $110,000+ Marginal Tax Rate 17.50% 24.00% 28.50% 37.50% 40.00% The income tax bracket above applies to all taxable income that an individual earns. Assume that the stock market returns 8.5% annually in nominal terms. All questions use nominal growth (not real growth) Assume that investors place all of their money into stocks. Assume that all returns compound annually. For questions regarding Roth contributions, assume that all taxes must be pulled from the contributions before they are invested. For example, in the question below, the $5,000 must first be taxed before entering the Roth 401k. Content for questions 1-4: Charles has an income of $72,000. He is contributing $5,000 to a Roth 401k and $1,000 to a traditional 401k. His company offers a full 100% match on any traditional 401k contributions, up to 4% of his total salary. His funds are invested with no fees. 2. How much money will be in his Roth 401k in 20 years? a. $15,975.14 b. $31,777.95 $33,637.50 C. d. None of the above