Answer:
Effective tax rate =28.50 %
Explanation:
given data 
Net Income before taxes = $2,00,000  
Interest revenue = $20,000  
Life insurance Premium = $10,000
tax rate = 30%
to find out 
Fern's effective tax rate
solution
first we get here Taxable Income that is express as 
Taxable Income = Net Income before taxes + Life insurance Premium - Interest revenue   ........................1
put here value we get 
Taxable Income = $2,00,000 + $10,000 - $20,000
Taxable Income = $190000
so 
Income tax Liability will be 
Income tax Liability = Taxable Income × Tax rate  .....................2
Income tax Liability = $190000  × 30%
so Effective tax rate will be 
Effective tax rate = 
Effective tax rate = 
Effective tax rate =28.50 %