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Your mother invested $66,900 in a taxable account 32 years ago. Your mother's marginal tax rate on interest income is 51.7%. Her marginal tax
Your mother invested $66,900 in a taxable account 32 years ago. Your mother's marginal tax rate on interest income is 51.7%. Her marginal tax rate on dividend income is 29.5%. Your mother earned an effective annual rate of return before tax of 11.9%. She only earned capital gains. During the 32 years your mother has sold none of the securities in her taxable account. Your mother has now decided to sell all of the securities in the taxable account, pay the applicable taxes and close the account. How much money will your mother receive after selling all of the securities and paying the applicable taxes? Your answer should be accurate to two decimal places. Answer: 2,136,209.54 (1,829,051.04)
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