Opal Earned 6% in Her Savings Account

question 50

Multiple Choice

Opal earned 6% in her savings account. If she is in the 25% tax bracket, what is her after-tax savings rate of return?

• A) 2%
• B) 2.5%
• C) 4.5%
• D) 7.5%
• E) 25%

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Definitions:

Period

In accounting, a period is a length of time during which financial activities are recorded and reported, such as a month, quarter, or year.

Calculate

To ascertain or compute a figure or amount through mathematical processes.

Period

A specific span of time during which certain financial activities or measurements are recorded and assessed.

Cost of Goods Manufactured

The total expense incurred by a company to produce goods in a given period, including materials, labor, and overhead costs.