solved 1. Ms. Investor is owed $18,000 in current pretax compensation.Assume

1. Ms. Investor is owed $18,000 in current pretax compensation.Assume Ms. Investor can invest her compensation in an ordinary 401k or a taxable investment account.Ms. Investor intends to invest in growth stocks that she anticipates will appreciate in value at 11% per year for 10 years, but pay no dividends during that time.At the end of 10 years, when she is 70 years old, Ms. Investor intends to sell her stock, take all of the cash, pay any required taxes and go on a world cruise.She expects her ordinary tax rate to always be 40% and her capital gains tax rate to always be 20%.How much cash will she have to pay for the cruise if she invests in the ordinary 401k?2. Ms. Investor is owed $18,000 in current compensation.Assume Ms. Investor can invest her pretax current compensation in an ordinary 401k or after-tax current compensation in a taxable investment account.Ms. Investor intends to invest in growth stocks that she anticipates will appreciate in value at 11% per year for 10 years.At the end of 10 years, Ms. Investor intends to sell her stock, take all of the cash, pay any required taxes and go on a world cruise.She expects her ordinary tax rate to always be 40% and her capital gains tax rate to always be 20%.How much cash will she have to pay for the cruise if she invests in the taxable investment account?How to input your answer: If you determine she will have 12,000 enter 120003.3.A graduate student earns pre-tax compensation of $15,000.The student’s current ordinary tax rate is 10%The student expects a future ordinary tax rate of 30%The graduate student can invest pretax compensation in an ordinary 401k or after-tax compensation in a Roth 401k.Without regard to which type of 401k she invests in she will earn a pretax rate of return of 10% for 40 years.How much cash will the graduate student have after withdrawal and payment of required taxes if she invests in an ordinary 401k?4.A graduate student earns pre-tax compensation of $15,000.The student’s current ordinary tax rate is 10%The student expects a future ordinary tax rate of 30%The graduate student can invest pretax compensation in an ordinary 401k or after-tax compensation in a Roth 401k.Without regard to which type of 401k she invests in she will earn an annual pretax rate of return of 10% for 40 years.How much cash will the graduate student have after withdrawal and payment of required taxes if she invests in a Roth 401k?How to input your answer: If you determine she will have 12,000 enter 12000