You would like to have $650,000 in 40 years by making regular deposits at the end of each month in an annuity that pays 7% compounded monthly. The table below shows the 2016 marginal taxrates, standarddeduction, and exemptions for a single person. Complete parts(a) through(c).

Tax Rate

Single

10%

up to$9275

15%

$9276 to$37,650

25%

$37,651 to$91,150

28%

$91,151 to$190,150

33%

$190,151 to$413,350

35%

$413,351 to$415,050

39.6%

more than$415,050

Standard Deduction

$6300

Exemptions

(per person)

$4050

a. Determine the deposit at the end of each month.

In order to have $650,000 in 40 years, you should deposit $

nothing

each month.

(Round up to the nearestdollar.)

b. Assume that the annuity in part(a) is atax-deferred IRA belonging to a man whose gross income in 2005 was $71,000. Use the table on the left to calculate his 2005 taxes first with and then without the IRA. Assume the man is single with nodependents, has no taxcredits, and takes the standard deduction.

The income tax with the IRA is $

nothing

.

(Use the answer from part(a) to find this answer. Round up to the nearest cent asneeded.)

The income tax without the IRA is $

nothing

.

(Use the answer from part(a) to find this answer. Round up to the nearest cent asneeded.)

c. What percent of his gross income are theman's federal taxes with and without theIRA?

Theman's taxes are

nothing

% of his gross income with the IRA.

(Round to the nearest tenth asneeded.)

Theman's taxes are

nothing

% of his gross income without the IRA.

(Round to the nearest tenth asneeded.)

Enter your answer in each of the answer boxes.