How much do you owe in taxes to nearest dollar

Assignment Help Financial Management

Reference no: EM132028621

Assume you are able to save and invest nothing for the next two years, but by that time will have $5,000 to invest. You invest it into a tax-deferred account paying 4% compounded daily. Then you again have nothing to invest for another two years, at which time you add another $5,000 of your after-tax dollars. After leaving the balance invested for another three years, you manage to add a full $10,000; and you are able to add another $10,000 three years after that. Finally, you leave all your funds in the account for another decade, but this time consistently adding $2,000 at the end of each year over that decade. The interest rate never changes and you’ve made no withdrawals. Now, at the end of the 20 years, you withdraw all the money and have to pay taxes on your earnings (not the contributions). With taxes having risen to 50%, how much do you owe in taxes to the nearest dollar?

Reference no: EM132028621

Questions Cloud

Estimate of the price per share that investment bank : What would be your estimate of the price per share that the investment bank should set for the stock's IPO next month?

What is the market-cap of this firm : What’s the growth rate for this firm? How many shares are outstanding? What is the price per share. What is the market-cap of this firm?

How much will you need to invest in stock : You have $20,000 to invest in a stock portfolio. how much ($) will you need to invest in Stock X and Stock Y?

What should one share of this stock be worth in the markets : What should one share of this stock be worth in the markets next year if investors presently expect an 8 percent return on the firm?

How much do you owe in taxes to nearest dollar : With taxes having risen to 50%, how much do you owe in taxes to the nearest dollar?

What required rate of return is implied : You estimate its dividend is expected to grow at an average of 3.5% per year. What required rate of return is implied?

Find the conversion premium-parity price and share : use the conversion equivalent (or conversion parity price per share) to find the conversion premium. Parity price/share. Conversion premium

Specialized plans are successful in medicaid managed care : Which statement is not true regarding why specialized plans are more successful in Medicaid managed care.

What was your required rate of return on medical money-flows : What WAS your required rate of return on MMF before the news came out?

User Account

All Pages