If Rudy Has a 25% Tax Rate and a 6

question 85

Multiple Choice

If Rudy has a 25% tax rate and a 6% after-tax rate of return, a $30,000 tax deduction in four years will save how much tax in today's dollars (rounded) ?

• A) $30,000
• B) $7,500
• C) $28,290
• D) $5,940
• E) None of these