Barbara’s combined federal and provincial marginal tax rate is 24.5%. If she invests $2,000 every year for 5 years, how

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answerhappygod
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Barbara’s combined federal and provincial marginal tax rate is 24.5%. If she invests $2,000 every year for 5 years, how

Post by answerhappygod »

Barbara’s combined federal and provincial marginal tax rate is
24.5%. If she invests $2,000 every year for 5 years, how much
after-tax income will she earn on her investment if interest is
paid at a rate of 3.5%, compounded quarterly? Barbara pays
quarterly tax instalments due to her high investment income.
Hint: Transform the interest rate to an after-tax rate by
multiplying by (1 – tax rate).
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