EBK PERSONAL FINANCE
EBK PERSONAL FINANCE
7th Edition
ISBN: 9780135165522
Author: Madura
Publisher: YUZU
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Chapter 4, Problem 1RQ
Summary Introduction

To determine: The reason for the importance to understand the consequences of taxes under the financial decisions.

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Explanation of Solution

In financial planning there are the involvement of the investing and spending decisions that has an effect on the income of an individual. The amount and the income type that an individual hold will affect the tax amount that an individual makes as a payment. Understanding the consequence of taxes, the financial decisions that an individual takes can be helpful in minimizing the tax liability and on the other hand it is helpful for the wealth maximization.

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