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Calculate the benefit for an investor from tax deferral of investment returns by investing in a tax-deferred savings plan (e.g., life insurance policies) versus investing
Calculate the benefit for an investor from tax deferral of investment returns by investing in a tax-deferred savings plan (e.g., life insurance policies) versus investing in a nontax- deferred savings plan. The investment (i.e. premium payment) is $1,000. Before-tax rate of return is 12 percent. The marginal tax rate the investor faces is 34 percent. The investment period is 15 years
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