Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

solve for part b please You would like to have $900,000 in 40 years by making regular deposits at the end of each month in

solve for part b please image text in transcribed
image text in transcribed
You would like to have $900,000 in 40 years by making regular deposits at the end of each month in an annuity that pays 8% compounded monthly. The table below shows the 2016 marginal tax rates, standard deduction, and exemptions for a single person. Complete parts (a) through (c). Tax Rate Single 10% up to $9275 15% $9276 to $37,650 25% $37,651 to $91,150 28% $91,151 to $190,150 33% $190,151 to $413,350 35% $413,351 to $415,050 39.6% more than $415,050 Standard Deduction $6300 Exemptions $4050 (per person) a. Determine the deposit at the end of each month. In order to have $900,000 in 40 years, you should deposit $ 258 each month. (Round up to the nearest dollar.) b. Assume that the annuity in part (a) is a tax-deferred IRA belonging to a man whose gross income in 2005 was $69,000. Use the table on the left to calculate his 2005 taxes first with and then without the IRA. Assume the man is single with no dependents, has no tax credits, and takes the standard deduction. The income tax with the IRA is $ (Use the answer from part (a) to find this answer. Round up to the nearest cent as needed.) The income tax without the IRA is $ (Use the answer from part (a) to find this answer. Round up to the nearest cent as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Methods of IT Project Management

Authors: Jeffrey Brewer, Kevin Dittman

2nd edition

1557536635, 978-0132367257, 0132367254, 978-1557536631

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago