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Mike has an average tax rate of 30% and a marginal tax rate of 40%. If he contributes $12,000 to his RRSP, the after-tax cost

  1. Mike has an average tax rate of 30% and a marginal tax rate of 40%. If he contributes $12,000 to his RRSP, the after-tax cost of the contribution is:

  1. $3,600

  1. $8,400

  1. $4,800

  1. $7,200

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