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Antonio would like to replace his golf clubs with a custom - measured set. A local sporting goods megastore is advertising custom clubs for $
Antonio would like to replace his golf clubs with a custommeasured set. A local sporting goods megastore is advertising custom clubs for $ including a new bag. Instore financing is available at percent, or he can choose not to renew his $ certificate of deposit CD which just matured. The advertised renewal rate is percent. Antonio knows the instore financing costs would not affect his taxes, but he knows he'll pay taxes percent federal and percent state on the interest earnings. Should he cash in the CD or use the instore financing? Why? Note: Round intermediate computations to at least five decimal places. The aftertax earnings rate is Round to two decimal places.
Antonio would like to replace his golf clubs with a custommeasured set. A local sporting goods megastore is advertising custom clubs for $ including a new bag. Instore financing is available at percent, or he can choose not to renew his $ certificate of deposit CD which just matured. The advertised renewal rate is percent. Antonio knows the instore financing costs would not affect his taxes, but he knows he'll pay taxes percent federal and percent state on the interest earnings. Should he cash in the CD or use the instore financing? Why?
Note: Round intermediate computations to at least five decimal places.
The aftertax earnings rate is
Round to two decimal places.
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