Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 55

An engineer is making an annual return of 12% before taxes on the retirement investments placed through her employer. No taxes are paid on retirement earnings until they are withdrawn; however, she was told by her brother, an accountant, that this is the equivalent of an 8% per year after-tax return. What percent of taxable income is her brother assuming to be taken by income taxes