What is the learning take away of this problem

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Reference no: EM131506395

Question: The income tax-free yield on a certain municipal bond is 7% per year. This translates into approximately a 5% annual yield if the municipal bond's interest had been taxable in the 28% income tax bracket [7% (1 - 0.28) approx. = 5%]. Compare the future worth of the two situations (i.e., non-taxable versus taxable interest) when $15,000 is deposited annually for 30 years. What is the learning "take away" of this problem?

Reference no: EM131506395

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What is the learning take away of this problem : The income tax-free yield on a certain municipal bond is 7% per year. This translates into approximately a 5% annual yield if the municipal bond's interest.

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