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Problem 7-32 (LO 7-1) Matt recently deposited $20,000 in a savings account paying a guaranteed interest rate of 4 percent for the next 10 years.

Problem 7-32 (LO 7-1)

Matt recently deposited $20,000 in a savings account paying a guaranteed interest rate of 4 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?

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