iquidity on youltarger puiciase ae Difficuity: Medium Learning Oljective: 05-03 Compare the Costs and Benefits of Various Savings Plans Topic: Investing for the Purchase of a Home earned S120 on $1500 invested in a high yield money market account. He is 89. (p 156 Josh taxed at 28% of his earnings. What is the effective yield on his investment? Answers will vary Feedback: Josh earned 8% (SI 20S1500) on his high yield money market account. After he pays taxes of28% on the $120 he earned, his effective yield will be approximately 5.8 ($120 x .72)/S 1 500 = $86.40/1 500 = .0576 Difficulty: Medin Learning Objective: 05-04 Identify Factors Used to Evaluate Differenr Savings Plans Topic: Eiflect of Taxes on Yeld 5-2