what is Nina’s after-tax accumulation from her 2013 contributions to her 401(k) account

what is Nina’s after-tax accumulation from her 2013 contributions to her 401(k) account

In 2013, Nina contributes 10 percent of her $128,000 annual salary to her 401(k) account. She expects to earn a 8 percent before-tax rate of
return. Assuming she leaves this (and any employer contributions) in the account until she retires in 25 years, what is Nina’s after-tax
accumulation from her 2013 contributions to her 401(k) account? (Do not round intermediate calculations. Round
“Times future value factor” to 4 decimal places. Round your answers to the nearest dollar amount.)

a.	Assume Nina’s marginal tax rate at retirement is 30 percent.

	Before-tax contribution Times future value factor Future value of contribution Taxes payable on distribution After tax proceeds from distribution b. Assume Nina’s marginal tax rate at retirement is 20 percent. Before-tax contribution Times future value factor Future value of contribution Taxes payable on distribution After tax proceeds from distribution

c.	Assume Nina’s marginal tax rate at retirement is 40 percent.

	Before-tax contribution Times future value factor Future value of contribution Taxes payable on distribution After tax proceeds from distribution

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