1. Mary has been a diligent investor. She invests $10,000 at the end of each year and earns 8% before taxes. She is in the 25% marginal tax bracket (meaning that dividends and capital gains will be taxed at 15%). She currently has $300,000 in the account. How much will she have in this account when she retires in 10 years?
$787,311
$716,073
$723,419
$799,215
2. Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.
$700 per year for 4 years at 6%. $
$350 per year for 2 years at 3%. $
$400 per year for 6 years at 0%. $
$700 per year for 4 years at 6%. $
$350 per year for 2 years at 3%. $
$400 per year for 6 years at 0%.