You would like to have $900,000 in 40 years by making regular deposits at the end of each month in an annuity that pays 8 %compounded monthly. The table below shows the 2016 marginal tax rates, standard deduction, and exemptions for a single person. Complete parts (a) through (c). {Please show all work}

a. Determine the deposit at the end of each month. In order to have $900,000 in 40 years, you should deposit ? 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 $52,000. Use the table below 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 ?.

(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 ?.

(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 ? of his gross income with the IRA.

(Round to the nearest tenth as needed.)

The man's taxes are ? of his gross income without the IRA.

(Round to the nearest tenth as needed.)

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