Question: Your friend is a basic rate taxpayer and has a large amount in a savings account which is earning 4% interest. He is worried that

Your friend is a basic rate taxpayer and has a large amount in a savings account which is earning 4% interest. He is worried that he will exceed the 1,000 of interest that he can earn free of tax as a basic rate taxpayer. Work out for him how much he would need to have in his savings account for a year before he exceeded the 1,000 limit.

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