How many after-tax dollars

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Paulette, a trial attorney for a corporation, was forced to leave the field due to an injury to her vocal chords. She switched careers and became a lower-paying author. Fortunately, she had three disability policies. Policy A had an own occupation definition that was paid for by her employer and was for $20,000 per year. Policy B, which she paid for, had an own occupation definition and was for $30,000 of coverage per year. Policy C, which also was purchased by her, had no own occupation definition and was for $60,000 in coverage per year. Paulette's marginal tax rate was 33 percent.

(a) How many after-tax dollars did she receive per year from Policy A?

(b) How many after-tax dollars did she receive per year from Policy B?

(c) How many after-tax dollars did she receive per year from Policy C?

Reference no: EM13306963

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