Answer : D: Marginal tax rate exceeds the average tax rate as income rises
In a progressive tax system as the income rises, the marginal tax bracket moves up whereas the average tax will be lower. Hence marginal tax rate will exceed the average tax rate
Answer:
Total needed= $2,700,000
Explanation:
Giving the following information:
The deficit for the first year of retirement, 10 years from now, is $90,000. He expects to be in retirement for 30 years and believes he can earn a 7% after-tax annual return on invested dollars. Inflation is expected to average 4% annually over this same period.
Real rate= 7 - 4= 3%
Total needed= 90,000*30= 2,700,000
That is a result of the operation called as calculation.
Calculation performed by processors and special programs which talk to processor - how to perform calculation.