Emma earned 8% in her savings account. If she is in the 25% tax bracket, what is her after-tax savings rate of return? a. 6.00% b. 2.00% c. 5.50% d. 8.00%

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 30MCQ
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What is her after tax saving rate of return on these financial accounting question?

Emma earned 8% in her savings account. If she is in
the 25% tax bracket, what is her after-tax savings rate
of return?
a. 6.00%
b. 2.00%
c. 5.50%
d. 8.00%
Transcribed Image Text:Emma earned 8% in her savings account. If she is in the 25% tax bracket, what is her after-tax savings rate of return? a. 6.00% b. 2.00% c. 5.50% d. 8.00%
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