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a. Find the value of the tax-deferred and the nondelemed accounts The future value of the tax-deferred account is The future value of the nondeferred account is 5 (Round to the nearest cent as needed.)

a. Find the value of the tax-deferred and the nondelemed accounts The future value of the tax-deferred account is The future value of the nondeferred account is 5 (Round to the nearest cent as needed.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 458.

Tax-deferred annuities pay no taxes on the income placed into the account but then pay taxes on all the money when it its withdrawn. Nondeferred plans pay taxes on the income prior to depositing the money then only pay on interest the Given the current tax rate, the number of years in an ordinary annuity each that contributions will be made to the annuity, and the tax rate when withdraws from the annuity are made, complete parts a through c Monthly Number of Annual Interest Current Tax Payment Years $550 40 Rate 3.5% Rate 25% Future Tax Rate 35% a. Find the value of the tax-deferred and the nondeferred accounts The future value of the tax-deferred account is $ nondeferred account is S The future value of the (Round to the nearest cent as needed.)
Transcribed Image Text:Tax-deferred annuities pay no taxes on the income placed into the account but then pay taxes on all the money when it its withdrawn. Nondeferred plans pay taxes on the income prior to depositing the money then only pay on interest the Given the current tax rate, the number of years in an ordinary annuity each that contributions will be made to the annuity, and the tax rate when withdraws from the annuity are made, complete parts a through c Monthly Number of Annual Interest Current Tax Payment Years $550 40 Rate 3.5% Rate 25% Future Tax Rate 35% a. Find the value of the tax-deferred and the nondeferred accounts The future value of the tax-deferred account is $ nondeferred account is S The future value of the (Round to the nearest cent as needed.)
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