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Suppose that when you turn 25, you are single and are in a 22% bracket for federal income tax and a 9% bracket for marginal
Suppose that when you turn 25, you are single and are in a 22% bracket for federal income tax and a 9% bracket for marginal income for state and local income taxes. (In 2021, this corresponded to an income between about $40,000 and $86,000 after a standard deduction of $12,550.) This means that you pay an income tax rate ("marginal rate") of 31% on the top part of your income but a lower rate on the rest. Suppose that you commit to saving $100 per month after taxes toward retirement. How much will be in your fund at age 65 if you can get a steady return of 6% compounded monthly? (Round your answer to two decimal places.)
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