Tax sheltered retirement plan

Assignment Help Finance Basics
Reference no: EM132133125

A single person with a monthly taxable income of $2800 in the 15% federal marginal bracket, has a state tax rate of 7.95% and social security taxes at 6.2%. This person forgoes consumption and instead places $230 into a tax sheltered retirement plan every month. What are the yearly tax savings due to these retirement contributions?

Reference no: EM132133125

Questions Cloud

Find the wacc : The firm can borrow at 6%. The tax rate is 40%. Let the firm beta be 1.9, the market return 14%, and the risk free rate 2%. Find the WACC.
Find the replacement chain value needed : Project Q costs 240. It provides inflows of 120 per year for three years. The cost of funds is 6%. Find the replacement chain value needed to compare it to a si
What is the npv of project : a. If the new flange-lipper is purchased, what is the amount of the initial cash flow at Year 0?
Replacing the latex molding machine : DeYoung Entertainment Enterprises is considering replacing the latex molding machine it uses to fabricate rubber chickens with a newer, more efficient model.
Tax sheltered retirement plan : This person forgoes consumption and instead places $230 into a tax sheltered retirement plan every month. What are the yearly tax savings due to these retiremen
Write a monitor to coordinate access to the file : The process priority number must be greater than or equal to the priority numbers all of the other processes that are currently accessing the file.
Compute rippard net profit margin : Rippard's has a debt ratio of 15%, a total asset turnover ratio of 3.0 and a return on equity (ROE) of 48%. Compute Rippard's net profit margin.
Original sales price of common stock : What is the amount of the excess of the original sales price of common stock over its par value called?
What is the beta for bmg : You have observed the following returns over time: What is the beta for BMG?

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate the current investments of robert and april

Evaluate the current investments of Robert and April. Make recommendations as to the viability and appropriateness of their current investments (for example, risk level, time horizon, and investment objectives.)

  What is the relationship between a methodology

What is the relationship between a Methodology, like Waterfall or Agile, and a Business Case?

  Start thinking about retirement

You have finished your time at School and need to start thinking about retirement. You plan on working for 30 more years and then retire. Upon your retirement 30 years from today, you plan to have enough money to withdraw $10,000 per month, with t..

  Problem on valuation of a constant growth stock

What is its value if the previous dividend was D0 = $3.75 and investors expect dividends to grow at a constant annual rate?

  Innovative consumer products via an online store

Assume you are planning to start a new business that will sell innovative consumer products via an online store.

  Your mission is to develop a comprehensive report

Your mission is to develop a comprehensive report to your CEO based on the topics covered in the course. Your task is to analyze the company in this context and provide recommendations. You decide how each topic should be addressed, and includ..

  Solve for the nominal rate

1) Suppose the real rate is 2.27% and the inflation rate is 6.35%. Solve for the nominal rate. Use the Fisher Effect formula.

  Saving and spending profile change depending

How does your saving and spending profile change depending on the state of the economy, i.e., whether the economy is in a recession versus expansion?

  Evaluate the given statement

‘Risk aversion implies that corporate managers will only invest in low risk investments'.  - Critically evaluate this statement (indicate whether you agree or disagree in your answer).

  Which option should you choose to maximize the amount

You are opening an IRA that earns 6% interest compounded daily. You wish to make monthly deposits into the IRA. You also want to purchase a new car for $25,000.

  What is the dividend they predict to pay out

Equity Inc. is expecting a sales increase of 8 percent and it anticipates that every item on the balance sheet will increase by 8 percent as well.

  Aluminum each year to manufacture bracelet blanks

2. BB currently uses 3,000 ingots of aluminum each year to manufacture bracelet blanks. The order cost (including shipping) is $5,000 per order, and carrying costs are $75 per unit per year. Determine the economic order quantity, the amount of sa..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd