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max2010maxim [7]
3 years ago
12

Bailey has $8,000 to invest. She has a 25% marginal tax rate.She is planning to reinvest her dividends and leave the investment

in place for three years. If she can invest the money in taxable securities that earn qualified dividends with a 6% rate of return before tax, how much will she have at the end of the third year?
Business
2 answers:
Snezhnost [94]3 years ago
8 0

Answer:

$9,287

Explanation:

Remember qualified dividends are taxed at 15%

6% x (1 -0.15) =

0.06 × 0.85 = 0.051 = 5.1%

$8,000 x (1+0.051)3

= $9,287.

sukhopar [10]3 years ago
7 0

Answer:

$9,287

Explanation:

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