Use the following information for the next four problems. You are going to invest $6,500 for the next 40 years. You expect to earn 10% per year on your investment. You expect that the tax rates of 15% on long-term capital gains and 24% on short-term capital gains will still be in effect in 40 years. You also expect that your current marginal tax rate on income of 24% will still be in effect in 40 years. Thus, any money you withdraw that is considered ordinary income will be taxed at this 24% rate. Also, assume that any tax savings resulting from your $6,500 investment is put in an after-tax account with unrealized gains. Please include this amount (where relevant) in your answer. If you take all of the money out in 40 years, how much after-tax money will you have if you invest in 5.3 A regular IRA 5.4 A ROTH IRA 5.5 A 401(k) plan with a 50% match (i.e. for every $1 you invest, your employer puts in an extra $0.50. Please note that you do not get any tax savings from any employer match as any tax savings only comes from money you directly invest in the 401(k) plan). 5.6 The above three problems, do not tell the whole picture; they ignore the fact that some accounts can be set up with pre-tax dollars while others must use after-tax dollars. How much income (also known as pre-tax money) does it take to set up a $6,500 regular IRA, ROTH IRA, and 401(k)? Setting up a $6,500 account means that you are putting $6,500 into the account (so for the 401(k) please ignore the effects here of any company match). So again, what is the minimum income you would need to have $6,500 after any applicable taxes in each of the three cases. Please assume a marginal tax rate of 24%.

JUST 5.6 PLEASE (unless you wanna do more), NO ARTIFICIAL INTELLIGENCE RESPONSES, THEY SUCK AT MATH