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Problem $13-66($LO $13-3)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up to $35$ percent of

their salary for five years. For purposes of this problem, ignore payroll taxes in your computations.

Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.

Problem $13-66$ Part b $($Algo$)$

b$.$ Assume Julie, an $xYZ$ employee, has the option of participating in $xYZ\text{'}$s deferred compensation plan. Julie's marginal tax rate is $37$

percent, and she expects the rate to remain constant over the next five years. Julie is trying to decide how much deferred

compensation she will need to receive from $xYZ$ in five years to make her indifferent between receiving the current salary of $$17,700$

and receiving the deferred compensation payment. If Julie takes the salary, she will invest it in a taxable corporate bond paying

interest at $5$ percent annually $($after taxes$).$ What amount of deferred compensation would accomplish this objective?