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.)
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
Problem 1PS
Related questions
Question
|
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
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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