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

question 1261

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

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William Bridges

An author and consultant who focuses on transitions and managing change in individuals and organizations.