Asked by wilmon

bill is in a 30% marginal tax bracket and lives in los angeles and has invested $20,000 in corporate bonds which earns average annual income of 7.5% what will be bills tax return for the current year?

Answers

Answered by MathMate
Earnings=20000*7.5%
30% marginal tax bracket means he pays 30% of his investment earnings in taxes.
Tax=earnings * 0.30
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