Question
I could not solve these question A) You are a New York state resident in the 25% federal marginal tax bracket and 6% marginal state
I could not solve these question
A) You are a New York state resident in the 25% federal marginal tax bracket and 6% marginal state marginal tax bracket, and are looking at 3 investments. You want to choose the bond investment that pays provides the highest cash flow.
1. corporate bond paying 6% 2. NYSDorm Authority bond paying 4.25% 3. UtahPure Waters bond paying 4.5%
B) You were saving for retirement, but then you started a family and purchased a house. You want to start saving through your paycheck (which you receive every 2 weeks). Before you stopped contributing to your retirement fund you saved $100 per paycheck for six years in an investment earning 10%. The money is this account has been earning 9% since you stopped savings. Your retirement goal is $1.25 million in 25 years and you feel that you can invest the money you will now have taken out of your pay at 7.5%. How much do you need to save per paycheck to achieve your goal? How much would you have in total at retirement if you could save $25 more per paycheck than you just calculated?
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