Question
What is the solution to this problem? In 2015, Nina contributes 8 percent of her $187,000 annual salary to her 401(k) account. She expects to
What is the solution to this problem?
In 2015, Nina contributes 8 percent of her $187,000 annual salary to her 401(k) account. She expects to earn a 7 percent before-tax rate of return. Assuming she leaves this (and any employer contributions) in the account until she retires in 30 years, what is Ninas after-tax accumulation from her 2015 contributions to her 401(k) account? (Round intermediate calculations to the nearest whole dollar amount. Round "Future value factor" to 4 decimal places.)
a. | Assume Ninas marginal tax rate at retirement is 30 percent. |
b. Assume Ninas marginal tax rate at retirement is 20 percent.
c. Assume Ninas marginal tax rate at retirement is 40 percent.
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