Andrew has $10,000 to invest.He wants to put his money in a one-year investment earning an annual interest rate of 12%.Andrew is in a 42% tax bracket.
Required:
a)Calculate the total value of Andrew's investment,after-tax,at the end of the year.
b)Calculate the amount of taxes Andrew will have to pay on his investment.

Question

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The Answer of Andrew has $10,000 to invest.He wants to put his money in a one-year investment earning an annual interest rate of 12%.Andrew is in a 42% tax bracket.
Required:
a)Calculate the total value of Andrew's investment,after-tax,at the end of the year.
b)Calculate the amount of taxes Andrew will have to pay on his investment.

Andrew Has $10,000 to Invest