Question: (A) If 30,000 after-tax dollars are invested at 7% in a single-premium tax-deffered annuity, how many after-tax dollars will be accumulated in 20 years?
(B) Studebaker can afford to have his annual income reduced by 3,052 after-tax dollars. How much is this before taxes? If these before-tax dollars are invested each year at 7%, how many after-tax dollars will be accumulated in 20 years?
(C) Redo part (B) assuming 8% is earned during years 1-10, 5% during years 11-15, and 7% during years 16-20.