Problem: What is the accumulated value of a $1,000 contribution to a qualified defined contribution plan under each of the circumstances described in the table below?
Tax Rate(%) Before-tax rate of return (%) Investment period
10 8 5 years
30 8 5 years
30 4 5 years
30 4 10 years
Suppose instead that the $1,000 is paid to an employee who then invests the funds in a nonqualified account. What is the accumulated value under EACH of the circumstances in the table?