Nicholas earned 11.5% in his savings account. If he is in the 27% tax bracket, what is his after- tax savings rate of return? a. 2.88% b. 4.14% c. 8.40% d. 11.50% e. 27.00%

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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Nicholas earned...financial accounting

Nicholas earned 11.5% in his savings account.
If he is in the 27% tax bracket, what is his after-
tax savings rate of return?
a. 2.88%
b. 4.14%
c. 8.40%
d. 11.50%
e. 27.00%
Transcribed Image Text:Nicholas earned 11.5% in his savings account. If he is in the 27% tax bracket, what is his after- tax savings rate of return? a. 2.88% b. 4.14% c. 8.40% d. 11.50% e. 27.00%
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