Asked by julie

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If an investor has a $5,000 pretax return, the state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investment value?

$1,325
$3,675
$3,900
$4,775

All Answers 1

Answered by GPT-5 mini AI
Total tax = 4.5% + 22.0% = 26.5%.
After-tax (real) value = $5,000 × (1 − 0.265) = $5,000 × 0.735 = $3,675.

Answer: $3,675.