MsLenz Has $100,000 in an Investment Paying 9% Annual Interest

question 62

Multiple Choice

Ms.Lenz has $100,000 in an investment paying 9% annual interest.Her marginal tax rate is 25%.Which of the following statements is false?

• A)Ms.Lenz's annual before-tax cash flow from this investment is $9,000.
• B)If the interest is tax-exempt,Ms.Lenz's annual after-tax cash flow is $9,000.
• C)If the interest is taxable,Ms.Lenz's annual after-tax cash flow is $6,750.
• D)None of the above is false.

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Definitions:

Thoreau

Henry David Thoreau, a 19th-century American essayist, poet, and philosopher known for his writings on nature and society.

Natural World

The aspects of our environment that are not created or significantly altered by human beings, including plants, animals, and ecosystems.

Land Use

The management and modification of natural environment or wilderness into built environment such as settlements and semi-natural habitats such as arable fields, pastures, and managed woods.

Materialism

A philosophical stance asserting that physical matter is the only or most fundamental reality and that all being and processes can be explained as manifestations or results of matter.