Estimate total money using marginal and average tax rate, Cost Accounting

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the Pay Yourself First scheme and has committed to save 10% of his after-tax income per year, he realizes that in some years he cannot as planned because he needs a minimum expenditure of $30,000 per year. His average tax-rate is 25% and his marginal tax-rate on interest income is 30%. He puts all his savings in a saving account that pays 2% interest. How much money will he have at the end of four years?

Posted Date: 3/20/2013 3:08:48 AM | Location : United States







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