You decide to invest $27,000 in a municipal bond that earns 6.15% and is federally tax free.  Your tax rate is 28%, how much have you effectively earned after ten years, assuming annual compounding? (Hint: must use two formulas to solve this question) In other words, because you are not paying taxes how much have you effectively earned?

Q: Your answer is incorrect. Your brother has asked you for a loan and has promised to pay you $5,400…

A: Step 1: Given Value for Calculation Future Value = fv = $5400Time = t = 3 YearsInterest rate = r =…

Q: credit reduce your taxe

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A: The value of the money at retirement is the future value of the savings.

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A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

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A: Data given: PV=$ 560,000 FV=$ 1000,000 rate=4.83% p.a.

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A: The calculation is as follows:

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A: Given: Federal income tax = $3,849 Gradient = 5% Interest rate = 11%

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A: Payroll deductions are the amount of wages that are taken from an employee's total earnings in order…

Q: 3) The Johnsons have accumulated a nest egg' of $40,000 that they intend to use as a down payment…

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A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

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A: Adjusted capitalized cost is calculated by adding taxes and deducting old asset exchanged and…

Q: Congress would like to increase tax revenues by 5 percent. Assume that the average taxpayer in the…

A: After-tax income = Pretax income × (1 − tax rate)

Q: You have $780, 000 in your retirement fund. Assuming no interest is being earned, how many dollars…

A: Monthly Withdrawal= (Initial Retirement Fund)/(Number of Months in 20 Years)Monthly Withdrawal=…

Q: 4. You need to raise $1,000,000 to buy a dam that will provide energy to your town. Your tax rate is…

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Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

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A: Savings account:A savings account is a financial product offered by banks and credit unions that…

Q: Suppose you are in the​ 25% marginal tax bracket and earn   ​$15,000.   Then a tax credit of…

A: The tax credit is an amount by which the amount of tax liability is decreased. It is different from…

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A: a. We need to use the following formula in excel to calculate before tax interest rate  Before tax…

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A: Tax-free bond Tax-free bonds are the bonds that are issued by government enterprises to raise money…

Q: You win a structured settlement in a lawsuit. Assume that the settlement pays $30,000 per year for…

A: Periodic Payment = $30,000 Time Period = 25 Years Discount Rate = 7%

Q: If you were to save and invest $1,000 a month in after-tax dollars and earn 6% before taxes…

A: Future value of the money is the amount of deposit done and amount of compounding interest…

Q: You are considering the tax consequences of investing $2,000 at the end of each year for 30 years in…

A: For calculation of accumulated value after 30 years , we will use formula of future value of annuity…