Question: Please show your claculations. Compute the difference between accumulated savings (net of taxes) for $15,500 (pretax) placed in bonds yielding 6.5% in a qualified pension
Please show your claculations. Compute the difference between accumulated savings (net of taxes) for $15,500 (pretax) placed in bonds yielding 6.5% in a qualified pension versus an investment in a murunicipal bond yielding 3.5%. The municipal bond sum deposited was made with after-tax dollars on the same pretax amount. The marginal tax rate was 25%. Assume that the sums were accumulated for 25 years and the pension was liquidated at that time.
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