Asked by Tammy

You are given the choice of $4,000 in extra taxable income per year or a tax-exempt medical policy. The medical policy costs $300 per month. Your tax rate is 25%. Considering financial factors only, should you take the cash or the medical policy?

11 years ago

Answered by Damon

4000 * .75 = 3000 I actually got
medical policy costs 12*300 = 3600
so take the free medical policy

11 years ago

Answered by Tammy

Thank you.

11 years ago

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