You are considering an MMMF. The fund is taxable and pays 8.5% interest. If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes, what after-tax return wou...

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You are considering an MMMF. The fund is taxable and pays 8.5% interest. If your top federal tax bracket is 25% and you live

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Answer 1

Answer #1

After tax return = interest*(1-tax rate) = 8.5*(1-0.25)=6.38%

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Answer 2

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You are considering an MMMF. The fund is taxable and pays 8.5% interest. If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes, what after-tax return wou...

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Kenneth pays taxes at the 12% federal income tax bracket level. His state also has a...

20. Assume you live in a state with a state income tax. The current Republican tax bill will get rid of the tax ded...

Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes,...

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You are considering an MMMF. The fund is taxable and pays 8.5% interest. If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes, what after-tax return wou...

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Add Answer to: You are considering an MMMF. The fund is taxable and pays 8.5% interest. If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes, what after-tax return wou...

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Kenneth pays taxes at the 12% federal income tax bracket level. His state also has a...

20. Assume you live in a state with a state income tax. The current Republican tax bill will get rid of the tax ded...

Federal Income Taxes Individuals and firms pay out a significant portion of their income as taxes,...

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Add Answer to:
You are considering an MMMF. The fund is taxable and pays 8.5% interest. If your top federal tax bracket is 25% and you live in a state that doesn't impose income taxes, what after-tax return wou...