You would like to have

$800,000

in

3131

years by making regular deposits at the end of each month in an annuity that pays

5 %5%

compounded monthly. The table below shows the 2016 marginal tax rates, standard deduction, 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

$800 comma 000800,000

in

3131

years, you should deposit

$nothing

each month.

(Round up to the nearest dollar.)

b. Assume that the annuity in part (a) is a tax-deferred IRA belonging to a man whose gross income in 2005 was

$ 60 comma 000.$60,000.

Use the table on the left to calculate his 2005 taxes first with and then without the IRA. Assume the man is single with no dependents, has no tax credits, 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 as needed.)

The income tax without the IRA is

$nothing.

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

c. What percent of his gross income are the man's federal taxes with and without the IRA?

The man's taxes are

nothing%

of his gross income with the IRA.