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Author Question: Will invests $20,000 of after-tax dollars (AT$) in tax-exempt municipal bonds which yield 5% per ... (Read 140 times)

CQXA

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Question 1

Which of the following is a classic example of the Deferred Model?
◦ a deductible traditional IRA
◦ a 401(k) plan
◦ a H.R. 10 (Keogh) plan
◦ a nondeductible traditional IRA

Question 2

Will invests $20,000 of after-tax dollars (AT$) in tax-exempt municipal bonds which yield 5% per year. He reinvests the interest in the same bonds and holds the bonds for two years. Will's marginal tax rate is 25%. What is his after-tax accumulation at the end of two years?
◦ $21,000
◦ $21,528
◦ $22,000
◦ $22,050


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Marked as best answer by CQXA on Sep 13, 2020

s.meritte

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CQXA

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Reply 2 on: Sep 13, 2020
Gracias!


ultraflyy23

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Reply 3 on: Yesterday
:D TYSM

 

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