Barbara’s combined federal and provincial marginal tax rate is 24.5%. If she invests $2,000 every year for 5 years, how
Posted: Sun Jun 05, 2022 7:37 am
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).
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).