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$100,000 invested for 30 years at 6% interest
(in a 36% tax bracket)
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| Year |
Annuity
6% Interest Rate
(Taxes deferred and
paid upon surrender)
|
Certificate of Deposit
6% Interest Rate
(Taxes paid annually) |
Net Advantage
of
Annuity
over
Certificate
of Deposit |
|
Net value after
Income Taxes |
Net Value after
Income Taxes |
|
| 10 |
$150,614.25 |
$145,762.83 |
$4,854.42 |
| 20 |
$241,256.67 |
$212,468.03 |
$28,788.64 |
| 30 |
$403,583.44 |
$309,699.41 |
$93,884.02 |
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