Question

A $6,000 balance in a tax-deferred savings plan will grow to $20,397.60 in 21 years at an 6 % per year interest rate. What 5 would be the future worth if the $6,000 had been subject to a 23 % income tax rate? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 6 % per year The future worth would be $ (Round to the nearest dollar.) 8: More Info Discrete Compounding: /-6% Single Payment Uniform Series Compound Compound Capital Sinking Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P FIP PIF FIA PIA AIP AIF 1 1.0600 0 9434 1.0000 0.9434 1.0000 1.0600 2 1.1236 0.8900 2.0600 1.8334 0.4854 0.5454 3 1.1910 0.8396 3.1836 2.6730 0.3141 0.3741 1.2625 0.7921 4.3746 3.4651 0.2286 0.2886 5 1.3382 0.7473 5.6371 4.2124 0.1774 0.2374 6 1.4185 0.7050 6.9753 4.9173 0.1434 0.2034 7 1.5036 0.6651 8.3938 5.5824 0.1191 0.1791 8 1.5938 0.6274 9.8975 6.2098 0.1010 0.1610 1.6895 0.5919 11.4913 6.8017 0.0870 0.1470 10 1.7908 0.5584 13.1808 7.3601 0.0759 0.1359 11 1.8983 0.5268 14.9716 7.8869 0.0668 0.1268 12 2.0122 0.4970 16.8699 8.3838 0.0593 0.1193 13 2.1329 04688 18.8821 8.8527 0.0530 0.1130 14 2.2609 04423 21.0151 9.2950 0.0476 0.1076 15 23966 04173 23.2760 9.7122 0.0430 0.1030 16 2.5404 0.3936 25.6725 10.1059 0.0390 0.0990 17 2.6928 0.3714 28 2129 10.4773 0.0354 0.0954 18 2.8543 0.3503 30.9057 0 0324 10.8276 0.0924 19 3.0256 0.3305 33.7600 11.1581 0.0296 0.0896 20 3.2071 03118 36.7856 11.4699 0.0272 0.0872 21 3.3996 0.2942 39.9927 11.7641 0.0250 0.0850 22 3.6035 02775 43.3923 12.0416 0.0230 0.0830 23 3.8197 0 2618 46.9958 12.3034 0.0213 0.0813 24 4.0489 0.2470 50.8156 12.5504 0.0197 0.0797 25 4.2919 0.2330 54.8645 12.7834 0.0182 0.0782 30 5.7435 0.1741 79.0582 13.7648 0.0126 00726 35 7.6861 0.1301 111.4348 14.4982 0.0090 0.0690 40 10.2857 0.0972 154.7620 15.0463 0.0065 0.0665 45 13.7646 0.0727 212.7435 15.4558 0.0047 0.0647 50 0 0543 18.4202 290.3359 15.7619 0.0034 0 0634

Answer 1

Ans: $15,706

Explanation:

Savings after deduction of income tax = 6,000 - (6,000 * 0.23) = 4620

FW = 4620(F/P, i, n)

= 4620(F/P, 6%, 21)

= 4620(3.3996)

= $15,706