Question: Problem 5.30 Your answer is partially correct. Try again. Congress and the president have decided to increase the federal tax rate in an effort to

Problem 5.30 Your answer is partially correct. Try again. Congress and

Problem 5.30 Your answer is partially correct. Try again. Congress and the president have decided to increase the federal tax rate in an effort to reduce the budget deficit. Suppose that Patricia Johnson will pay 35 percent of her bonus to the federal government for taxes if she accepts the bonus of $1,890 today and 40 percent if she receives her bonus of $2,179 in 2 years. She can invest at 6 percent. Will the increase in tax rates affect her decision? Yes It her decision

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