Question
Matt recently deposited $34,000 in a savings account paying a guaranteed interest rate of 5 percent for the next 10 years. (Do not round intermediate
Matt recently deposited $34,000 in a savings account paying a guaranteed interest rate of 5 percent for the next 10 years.(Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
a.If Matt expects his marginal tax rate to be 20 percent for the next 10 years, how much interest will he earn after-tax for the first year of his investment?
AFTER-TAX INTEREST___?
b.How much interest will he earn after-tax for the second year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns?
AFTER-TAX INTEREST___?
c.How much will he have in the account after four years?
BALANCE___?
d.How much will he have in the account after seven years?
BALANCE___?
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
