Mr. Smith can borrow at 0.06 and investments are expected to earn 0.10 in a tax deferral

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Mr. Smith can borrow at 0.06 and investments are expected to earn 0.10 in a tax deferral account. Mr. Smith’s tax rate is 0.35.

Assume Mr. Smith borrows $1,000 to pay for the $1,000 placed in a tax deferral account. The interest on the funds borrowed does not result in a tax deduction.

Is this borrowing and investing desirable?

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Bare Essentials Of Investing The Teaching The Horse To Talk

ISBN: 9789812705402

1st Edition

Authors: Harold Bierman

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Question Posted: Jun 06, 2024 01:10 AM

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Mr. Smith can borrow at 0.06 and investments are expected to earn 0.10 in a tax deferral

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Bare Essentials Of Investing The Teaching The Horse To Talk

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