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Need help solving Suppose you are a manager for a certain company. You oam $50,000 per year and are in the 20% federad income tax
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Suppose you are a manager for a certain company. You oam $50,000 per year and are in the 20% federad income tax bracket. Each year you contribute $4. soo tax free to yoar individual reirement account, tru. The accoust earns b\% annual interest. In adotion, the amnunt of tax that you sive each year by making theme "pre-tar" contribotions is invested in a taxable aggrescive growth mutual fund averaging 16%. (a) How much tax do you save (in s) each year by making the retiremene fund contributions? (b) Using Table 12-1, much will the retirement fund be worth (in s) in 30 years? (found your answer to the nearest cent.) x (c) Alhough the income from this investment is taxatile each year, using table 12-1, how much will the "tax savings" fund be worth (fn 5 ) in 30 years? (Found pour antwer to the nearest cent.) Step by Step Solution
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