Miles Invests $20,000 in a Taxable Bond for 5 Years

question 38

Multiple Choice

Miles invests $20,000 in a taxable bond for 5 years that earns 5% interest per year.His marginal tax rate is 15%.What is his after-tax accumulated investment at the end of year 1?

• A)$20,850
• B)$21,000
• C)$21,700
• D)$22,000

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