please answer a through d
Personal Finance (3) Save Homework: Chapter 19 Homework Score: 0.75 of 1 pt 10 of 10 (10 complete) HW Score: 97.5%, 9.75 of 10 pts % Planning #7 (similar to): Retirement Pla Question Help Retirement Planning. Tilly would like to invest $2,100 in before-tax income each year in a retirement account or in stock investments outside the retirement account. Tilly likes the stock investments outside the retirement account because they provide her with more flexibility and a potentially higher return. Tilly would like to retire in 25 years. If she invests money in the retirement account, she can earn 6% annually. If she invests in stock outside the account, she can earn 8% annually. Tilly is in the 24% marginal tax bracket. a. If Tilly invests all her money in the retirement account and withdraws all her income when she retires, what is her income after taxes? b. If Tilly invests all her money in stocks outside the account, what are her savings at retirement? (Hint: Remember that the income is taxed prior to investment.) C. Assuming a capital gains tax rate of 15%, what is the after-tax value of the stock investments? d. Should Tilly invest her money in the retirement account or in stocks outside the account? a. If Tilly invests all her money in the retirement account and withdraws all her income when she retires, her income after taxes is $ (Round to the nearest dollar.) ? Enter your answer in the answer box and then click Check Answer. 3 parts remaining Clear All Check Answer Personal Finance (3) Save Homework: Chapter 19 Homework Score: 0.75 of 1 pt 10 of 10 (10 complete) HW Score: 97.5%, 9.75 of 10 pts % Planning #7 (similar to): Retirement Pla Question Help Retirement Planning. Tilly would like to invest $2,100 in before-tax income each year in a retirement account or in stock investments outside the retirement account. Tilly likes the stock investments outside the retirement account because they provide her with more flexibility and a potentially higher return. Tilly would like to retire in 25 years. If she invests money in the retirement account, she can earn 6% annually. If she invests in stock outside the account, she can earn 8% annually. Tilly is in the 24% marginal tax bracket. a. If Tilly invests all her money in the retirement account and withdraws all her income when she retires, what is her income after taxes? b. If Tilly invests all her money in stocks outside the account, what are her savings at retirement? (Hint: Remember that the income is taxed prior to investment.) C. Assuming a capital gains tax rate of 15%, what is the after-tax value of the stock investments? d. Should Tilly invest her money in the retirement account or in stocks outside the account? a. If Tilly invests all her money in the retirement account and withdraws all her income when she retires, her income after taxes is $ (Round to the nearest dollar.) ? Enter your answer in the answer box and then click Check Answer. 3 parts remaining Clear All Check