If Rudy has a 25% tax rate and a 6% after-tax rate of return, a $30,000 tax deduction in four years will save how much tax in today's dollars? (round present and future value amounts to 3 places)

Name: If Rudy has a 25% tax rate and a 6% after-tax rate of return, a $30,000 tax deduction in four years will save how much tax in today's dollars? (round present and future value amounts to 3 places)
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Question

Quizplus · Accepted Answer

$30,000 × .25 (tax rate) × .792 (Discount Factor, 6%, 4 years) = $5,940.

If Rudy Has a 25% Tax Rate and a 6