suppose an individual earns more than M15000 a year and decide to put M10000 into retiremer plan in one year (this year). Assume that he is in 28 percent marginal tax bracket and interest on saving is treated as normal income. If the money saved earns 10 percent annually for 20 years, w
suppose an individual earns more than M15000 a year and decide to put M10000 into retiremer plan in one year (this year). Assume that he is in 28 percent marginal tax bracket and interest on saving is treated as normal income. If the money saved earns 10 percent annually for 20 years, w
Chapter17: Tax Practice And Ethics
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:suppose an individual earns more than M15000 in
a year and decide to put M10000 into retirement
plan in one year (this year). Assume that he is in the
28 percent marginal tax bracket and interest on the
saving is treated as normal income. If the money
saved earns 10 percent annually for 20 years, what
will be income available in period 2 (NB: after 20
year assuming annual compounding, (1+r)^t)?
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