Go to money.msn.com/personal-finance/savings-calculator.aspx and answer the following questions:
a. Using the calculator "How Much Can You Save?," determine how much money you will have if you currently have nothing saved and you deposit $500 annually for the next 20 years at a 10% rate of return and a 28% marginal tax rate.
b. Repeat the exercise using a 4% rate of return. Compare the new estimate of savings to the previous estimate.
c. Repeat 2a except assume that you will make the deposits in an account that will grow tax-free. Does investing in a tax-free account result in a significant increase in the total amount saved?