On March 1, 20x1, Notes Inc. purchased a two-year guaranteed investment certificate (GIC)for $15, interest compounds annually at 8% and will be received at the end of the full term. Notes Inc. has a m tax rate of 30%, which will increase to 34% for 20x2 and 20x3. Notes Inc. uses the calendar year as i year.
Angela Major also invested $15,000 in a GIC with an 8% annual return, on March 1, 20x1, with inte paid at the end of each annual period. Angela's marginal tax rate is 40%.
(Assume there are no leap years in this time period.)Required:
Calculate the after-tax interest income for each year for Notes Inc. and for Angela. (Round all numbe

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The Answer of On March 1, 20x1, Notes Inc. purchased a two-year guaranteed investment certificate (GIC)for $15, interest compounds annually at 8% and will be received at the end of the full term. Notes Inc. has a m tax rate of 30%, which will increase to 34% for 20x2 and 20x3. Notes Inc. uses the calendar year as i year.
Angela Major also invested $15,000 in a GIC with an 8% annual return, on March 1, 20x1, with inte paid at the end of each annual period. Angela's marginal tax rate is 40%.
(Assume there are no leap years in this time period.)Required:
Calculate the after-tax interest income for each year for Notes Inc. and for Angela. (Round all numbe