2) Consider the following information Billions of BHD Transfer Payments Made by Household 50 Personal Inferest Payments 10 Personal Income 500 Personal Consumption Expenditures 100 a) If the income tax rate is 20%, calculate the personal savings and personal saving rate

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A: Given that  Present value = $ 1000 Rate (r) = 6% Time period (t) = 3 years

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Q: Am. 111.

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Q: ution to such a

A: Given contribution as, $5,000 to $3,000 per year.

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.