Phil and Emily Brooks Have Three Sons, Jason, 16, Tom

question 87

Essay

Phil and Emily Brooks have three sons, Jason, 16, Tom, 12, and Adam, 10. They create a Colorado 529 plan for each of their sons by investing $10,000 in three different plans. Each of these investments yields a constant return of 6.5 percent. When they turned 18, Jason and Adam withdrew the funds in their 529 plans and used the money for higher education expenses while Tom withdrew the funds in his 529 plan to start a new business. Assuming that each of the sons have a 15 percent marginal tax rate when they turn 18, how much money will each of the three boys have after paying all applicable taxes due? (Round all interim and final calculations to the nearest whole number)

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Definitions:

Neat Pile

A carefully arranged stack of items where everything is orderly placed.

Sentence Variety

The practice of varying the length, structure, and type of sentences to enhance the readability and interest of writing.

Affirmative Action

Policies or measures taken to increase the opportunities for underrepresented groups in various areas, including education and employment, as a way to address past inequalities.

Social Barriers

Obstacles that exist within societies, limiting individuals' opportunity and access to resources, rights, and freedoms based on class, ethnicity, gender, or disability.