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thunter609 thunter609
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10 months ago
Justin is comparing two investments, A and B. A pays its return in interest, whereas B is a growth investment whose return is in the form of price appreciation. Assume Justin sells Investment B after one year. What is the difference between Investments A and B on an after-tax return basis after one year if Justin's marginal tax rate is 32% and both investments are expected to earn 10% on an initial investment of $50,000?

▸ The after-tax return on Investment B is $850 more than A.

▸ The after-tax return on Investment B is $600 more than A.

▸ There is no difference between the two.

▸ The after-tax return on Investment A is $850 more than B.
Textbook 
Personal Finance

Personal Finance


Edition: 2nd
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malgrextoutmalgrextout
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10 months ago
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thunter609 Author
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10 months ago
Good timing, thanks!
einstein
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Yesterday
Smart ... Thanks!
bahajo
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2 hours ago
Thanks
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