Tax-deferred annuities pay no taxes on the income placed into the account but then pay taxes on all the money when it is withdrawn Nonduferred plans pay taxes on the income per te deposting the money into the account and then only pay taxes on the Interesteamed by the account. Given the amount set aside in an ordinary annuty each month, the current tax rate, the number of years that contrbutions will be made to the annuity, and the taste when Withdraws from the annuity are made, complete parts a through Monthly Number of Annual Interest Current Tax Future Tax Payment Years Rate Rate Rate 35 3.5% 30% 40% 1000 a. Find the value of the tax ferred and the nonduferred COM. The Mure of the food count is The future value of the nondeterred accounts (Round to the com as needed) Calculate the interest that was cred in both account. The will be the wee of the account minus the payments made The deferred count med interest The rondeferred account came interest Round to the recent as need c. If all money awtown from each count and the relevant taxes are paid, which account is better and try how much? Ar paying the relevant taxes, the taxdetarted account ratumes and the nondetered account returns The theme sccount as a better choice because it was more than the conditioned account Round to the nearest certas noded Tax-deferred annuities pay no taxes on the income placed into the account but then pay taxes on all the money when it its withdrawn. Nondeferred plans pay taxes on the income prior to depositing the money into the account and then only pay taxes on the interest eamed by the account Given 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 withdraws from the annuity are made, complete parts a through c. Monthly Number of Annual Interest Current Tax Future Tax Payment Years Rate Rate Rate $600 35 3.5% 30% 40% a. Find the value of the tax-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 cent as needed.) b. Calculate the interest that was earned in both accounts. This will be the value of the account minus the payments made The tax-deferred account eamed sin interest The nondeferred account eamed $ in interest (Round to the nearest cent as needed.) c. It all money is withdrawn from each account and the relevant taxes are paid, which account is better and by how much? After paying the relevant taxes, the taxdeferred account returns $ and the nondeferred account returns $ The tax-deferred account is a better choice because it retums $ more than the nondeferred account, (Round to the nearest cent as needed)
