Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account. An Statement Advantage Not an Advantage Retirement accounts provide their greatest advantage when you start saving earlier-rather than later-in your lifetime. O O The greater your marginal tax rate, the greater the tax savings associated with contributions to a tax- sheltered retirement account. O It is best that your contributions start later rather than sooner. o The maximum dollar amount your employer will contribute to your 401(k) account this year is Assume that you contribute 7% of your gross income to your 401(k) account. How much will you contribute annually and per pay-period to your retirement account? O $3,150 and $121, respectively O $135,000 and $131, respectively O $3,150 and $263, respectively O $3,150 and $525, respectively $525 and $158, respectively Given your employer's contribution matching program, a total of will be deposited into your retirement account each pay period. The actual tax savings for the employee from their portion of the contributions will be in income taxes per year. (Round all dollar amounts to the nearest whole dollar. Do not round intermediate calculations.) Suppose that you make contributions of $121 every pay period for the following number of years. Further assume that your retirement account earns an average return of 6% per year and the company matches 50% of the employee contribution. Scenario: You are 23-years-old and working in the marketing department of a medium-sized corporation. You are earning an annual salary of $45,000 paid every two weeks. Your employer provides a 401(k) plan, and matches employee contributions by 50% up to a maximum of 3% of your annual salary. You are in a 25% marginal tax rate. Read each of the statements below and indicate whether it reflects an advantage associated with investing in a tax-sheltered retirement account. An Statement Advantage Not an Advantage Retirement accounts provide their greatest advantage when you start saving earlier-rather than later-in your lifetime. O O The greater your marginal tax rate, the greater the tax savings associated with contributions to a tax- sheltered retirement account. O It is best that your contributions start later rather than sooner. o The maximum dollar amount your employer will contribute to your 401(k) account this year is Assume that you contribute 7% of your gross income to your 401(k) account. How much will you contribute annually and per pay-period to your retirement account? O $3,150 and $121, respectively O $135,000 and $131, respectively O $3,150 and $263, respectively O $3,150 and $525, respectively $525 and $158, respectively Given your employer's contribution matching program, a total of will be deposited into your retirement account each pay period. The actual tax savings for the employee from their portion of the contributions will be in income taxes per year. (Round all dollar amounts to the nearest whole dollar. Do not round intermediate calculations.) Suppose that you make contributions of $121 every pay period for the following number of years. Further assume that your retirement account earns an average return of 6% per year and the company matches 50% of the employee contribution