Tax.deferred annuities pay no taxes on the income placed into the account but then pay taxes on all the money when it is With Nondeferred plans pay taxes on the income prior to deporting the money into the account and then only pay taxes on the interesteamed by the account. The table below shows the amount set aside in an ordinary annuity each month, the current tax rate the number of years that contributions will be made to the annuity, and the tax rate when withdrawals from the annuity are made. Complete parts a through Monthly Number of Annual Interest Current Tax Future Tax Payment Years Rate Rate Rate $400 30 5% 25% 255 a. Find the value of the tax-deferred and the nondeferred accounts The future value of the tax-deferted account is The future value of the mondeferred account is (Round to the nearest cent as needed c. If all money is withdrawn from each account and the relevant taxes are paid, which account is better and by how much? Calculate the amount in taxes paid on each account when the funds are withdrawn. Recall that the tax deferred account pays taxes on the entire amount while the nondeferred account only pays taxes on the interesteamed Then subtract the amount paid in taxes from the future value of the account to determine the value of each account after taxes. Use these values to determine which account returns more money and the absolute difference between the values of the accounts Account is $79,465.21. b. Calculate the interest that was earned in both accounts. This will be the value of the account minus the payments made. To find the amount of interest earned on each account, first compute the sum of all the payments made to that account by multiplying the amount of the payment by the number of periods n. Subtract this value from the future value to determine the amount of interest earned. Tax.doferred annuities pay no taxes on the income placed into the account but then pay taxes on all the money when wondered plants in the comporte depositing the money into the account and the only pay taxes on the rest earned by the court. The table below shows the amount ordinary teach month the current tax rate, the number of years that contributions will be made to the annuity, and the tax rate when wthoranas romantys de Comporta a thought Monthly Number of Annual interest Current Tax Future Tax Payment Years Rate Rate Rate $400 30 5% 25% a. Find the value of the to-deferred and the nondeferred accounts The future value of the tax-deferred account is s The future value of the nondeferred account is Round to the nearest cont as needed