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 You would like to have $550,000 in 39 years by making regular deposits at the end of each month in an annuity that pays 6% compounded monthly. The table below shows the 2016 marginal tax​ rates, standard​ deduction, and exemptions for a single person. Complete parts​ (a) through​ (c). a. Determine the deposit at the end of each month. In order to have 550,000 in 39 ​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 $52,000.  Use the table on the left to calculate his 2005 taxes first with and then without the IRA. Assume the man is single with no​ dependents, has no tax​ credits, and takes the standard deduction.   The income tax with the IRA is ​$____. ​(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.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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

You would like to have $550,000 in 39 years by making regular deposits at the end of each month in an annuity that pays 6% compounded monthly. The table below shows the 2016 marginal tax​ rates, standard​ deduction, and exemptions for a single person. Complete parts​ (a) through​ (c).

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

In order to have 550,000 in 39 ​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 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 ​$____. ​(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.)
 
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