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Suppose that you make contributions of $185 every pay period for the following number of years. Further assume that your retirement account earns an average

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Suppose that you make contributions of $185 every pay period for the following number of years. Further assume that your retirement account earns an average return of 7% per year and the company matches 50% of the employee contribution. Use the following table to compute the following three values, rounded to the nearest whole dollar. Future Value of a Series of Equal Amounts 5% 6% 7% 4% 8% 9% Pay periods 234 196.3849 188.2900 166.6305 180.6519 195.3505 173.4412 186.8090 260 214.1580 204.4526 178.7886 259.2222 160.1945 171.2528 240.9872 520 357.7566 328.5189 279.6629 302.6353 361.5551 780 454.0431 403.8051 325.8162 295.4078 269.3832 806 461 7209 409 4666 365 7305 328 8959 297 6796 271 0592 Value of retirement account when you are: 37 years old (260 pay periods) 47 years old (520 pay periods) 57 years old (780 pay periods) All other things being equal, what is the best type of investment income? Taxable income Tax-exempt income Tax-sheltered income Tax-deferred income

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