In part B, we are asked to calculate the pretax nominal rate of return. Why do we only assume the “pmt” part of the calculation is the $12,000 she contributes to her TDA? She will continue working (earning the $140,000 and paying taxes on it) and she will continue carrying living expenses ($96,000). I understand that future increases in these are offset by one another, but it seems to me like the “pmt” would include these.