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1.) Matt recently deposited $30,000 in a savings account paying a guaranteed interest rate of 4 percent for the next 10 years. If Matt expects

1.) Matt recently deposited $30,000 in a savings account paying a guaranteed interest rate of 4 percent for the next 10 years. If Matt expects his marginal tax rate to be 22 percent for the next 10 years, how much interest will he earn after-tax after the seventh year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns?
2.) Dana intends to invest $20,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax. Danas federal marginal rate is 25 percent and her marginal state rate is 5 percent. What is the amount by which the yield on the corporate bond exceeds the yield on the Treasury bond. Assume that Dana itemizes her deductions and that any state income tax would be fully deductible.
3.) Hayley recently invested $60,000 in a public utility stock paying a 3 percent annual dividend. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in four years if the dividends paid are qualified dividends? (Hayleys marginal income tax rate is 32 percent.)
4.) John bought 1,000 shares of Intel stock on October 18, 2016 for $35 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. What is the gain/loss for John on the sale of his Intel stock?

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