Emily is in the 25% bracket and has $15,000 available for investment during her current tax year. Assume that she remains in the same tax bracket over the next 7 years and determine the accumulated amount of her investment if she puts the $15,000 into the following.

(a) a tax-deferred annuity that pays 5%/year (compounded annually), tax deferred for 7 years

$ ____________ (after taxes)

(b) a taxable instrument that pays 5%/year (compounded annually) for 7 years (Hint: In this case, the yield is 3.75%/year.)

$ ____________

Please solve using calculus, not charts