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Augustus1 Augustus1
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Posts: 1894
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7 years ago
Jan can invest $4,000 of after-tax dollars (AT$) directly in a taxable bond outside an IRA, or she can contribute the $4,000 to a nondeductible IRA and invest in the same bond through the IRA vehicle. In either case the bond yields an annual 4% before-tax rate of return (BTROR). Jan's marginal tax rate is 15%, and she expects it to remain so for the entire investment horizon of 25 years. What is her annualized after-tax rate of return (annualized ATROR) for the "bond inside the IRA"?
A) 3.6%
B) 4.5%
C) 4%
D) None of the above.
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
Authors:
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We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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Yoko900Yoko900
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7 years ago
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Augustus1 Author
wrote...
7 years ago
You're a saint, honestly

Thank you
We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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