Given the following data for a post -retirement contribution
Annual contribution : 7500
tax bracket: 15%,
Effective rate: 9% ,
Investment years: 25
Note specific instructions:
Calculate the available retirement income (after tax) by:
1)reducing the contribution amount by the tax you would have to pay on that amount BEFORE calculating the final annuity amount.
So:
After reducing the contribution amount by the tax you would have to pay on that amount
Calculate the interest earned
Calculate balance after taxes
I got $420,089.9741 as the available retirement income..
is this correct?