need help for 1-3

There are two parts in this this project. For each part of this project, use numbers to support your answers whenever possible. Excel should be used for the data analyses. All answers should be supported by proper documentation of the steps and computation including the Excel financial functions and the parameters used. For example, a future value computation for an annuity of $4,000 for 30 years with interest rate of 6% is the function of "FV= (6%,30, 4000,),".Thisshouldbeclearlydisclosedinyourreport. Part A Regular IRA vs Roth IRA A taxpayer, 24 and single, took his first permanent job right after college. The employer offers many benefits including health insurance, 401(k), deferred compensation, etc. After paying all expenses, the taxpayer decides to set aside $4,000 each year to fund his personal retirement accounts until his expected retirement age of 70 . He is eligible to set up his own personal retirement account in addition to the 401(k) retirement plans offered by his employer. He is aware that options available include a regular IRA (individual retirement account) and Roth IRA. His current income does not limit his contribution amount and places him in the 24% bracket for federal income tax and 9.3% bracket for state income tax. The funds in the IRAs will be invested in the S\&P 500 index fund that has generated an average annualized return of 9.4% in the past 50 years. Use the above information to answer the following questions. 1. What are the key differences between the regular IRA and Roth IRA? You want to discuss the tax effect at the time of contribution to the account, the withdrawal from the account at retirement, income limitations on the contribution to both IRAs, etc. 2. If the taxpayer elects to contribute to the regular IRA, what will be the balance before income tax in the account when he reaches 70 before withdrawal? If his tax rate is 35% at retirement, how much cash (net cash flow) will be available to him if he makes a one-time withdrawal from the account at 70 and how much cash is left after tax payment? 3. If he elects to contribute to the Roth IRA, what will be the balance in the account at 70 ? If his tax rate is 35% at retirement, how much cash (net cash flow) will be available to him if he makes a one-time withdrawal from the account at 70 and how much cash is left after tax payment