Question

When comparing two investment options, one with an expected return of 10% per year and another with an expected return of 6% per year, which option would be more profitable considering the capital gains tax rate is 20%?

227

likes

1133 views

Answer to a math question When comparing two investment options, one with an expected return of 10% per year and another with an expected return of 6% per year, which option would be more profitable considering the capital gains tax rate is 20%?

$Expert avatar$

Timmothy

4.8

99 Answers

1. Calculate the after-tax return for the investment with a 10% expected return:

R_{10\%} = 10\% \times (1 - 0.20) = 10\% \times 0.80 = 8\%

2. Calculate the after-tax return for the investment with a 6% expected return:

R_{6\%} = 6\% \times (1 - 0.20) = 6\% \times 0.80 = 4.8\%

3. Compare the after-tax returns:

8\% > 4.8\%

Thus, the investment option with a 10% expected return is more profitable after considering the capital gains tax rate of 20%.

Frequently asked questions (FAQs)

What is the formula for finding the standard deviation of a sample?

Math question: In triangle ABC, angle BAC measures 90°. The angle bisector of angle BAC intersects BC at point D. If AD = 4 cm and CD = 6 cm, what is the length of BD?

What is the largest prime factor of 36?

New questions in Mathematics

If you have a bag with 18 white balls and 2 black balls. What is the probability of drawing a white ball? And extracting a black one?

11(4x-9)= -319

A drawer contains three pairs of white socks, five pairs of black socks and two pairs of red socks. Caden randomly selects two pairs of socks on his way to the gym. What is the probability that both pairs of socks are black?

For a temperature range between -3 degrees Celsius to 5 degrees Celsius, what is the temperature range in degrees Farenheight

Additionally, the boss asked Armando to determine how many toy sales branches he would have in the fifteenth year, knowing that the first year they started with two branches, by the second they already had 5 branches and, by the third year, they had 8 branches. From the above, determine the number of branches it will have for the fifteenth year.

The equation of the circle that passes through (5,3) and is tangent to the abscissa axis at x=2 is a.(x-2)^2 (y 3)^2 = 9 b.(x-2)^2 (y-3)^2 = 9 c.(x-2)^2 (y-3)^2 = 4 d.(x-2)^2 (y 1)^2 = 4 e.(x-2)^2 (y-1)^2 = 4

-0.15/32.6

7/6-(-1/9)

(24, -7) is on the terminal arm of an angle in standard position. Determine the exact values of the primary trigonometric functions.

Three squares have a total area of 35.25 𝑐𝑚2 . The larger square has twice the side-length of the middle-sized square. The smaller square has its side length exactly 0.5 cm smaller than the middle-sixed square. Find the side lengths of each of the three squares.

Nice's central library building is considered one of the most original in the world, as it is a mix between a sculpture and a work of habitable architecture. It was called La Tête Carrée and is made up of part of a bust that supports a cube divided into five floors. It is known that the building has a total height of approximately 30 meters. It admits that the cubic part of the sculpture is parallel to the floor and has a volume of 2744 meters3 Calculate, in meters, the height of the bust that supports the cube. Displays all the calculations you made.

Equine infectious anemia (EIA) is considered the main infectious disease in Brazilian equine farming, for which there is no effective vaccine or treatment. It is caused by a retrovirus of the genus Lentivirus, which affects horses, donkeys and mules and is transmitted in nature mainly by hematophagous insects of the genus Tabanidae. Researchers analyzed the records of 9,439 equids from Acre, submitted to the agar gel immunodiffusion test (AGID) for equine infectious anemia (EIA), between 1986 and 1996. Of these, 6199 tested positive for equine infectious anemia (EIA) . Knowing that the age of AIE-positive horses follows a Normal distribution with a mean of 5 years and a standard deviation of 1.5 years, determine the expected number of AIE-positive horses in the Acre sample that will be aged less than or equal to 3 years. ATTENTION: Provide the answer to exactly FOUR decimal places.

2)A tourist has 15 pairs of pants in his hotel room closet. Suppose 5 are blue and the rest are black. The tourist leaves his room twice a day. He takes a pair of pants and puts them on, the tourist leaves the first pair of pants in the closet again and takes another one and puts them on. What is the probability that the two pants chosen are black?

MAKING AN ARGUMENT You use synthetic division to divide f(x) by (x − a) and find that the remainder equals 15. Your friend concludes that f (15) = a. Is your friend correct? Explain your reasoning.

-5x=115

Solve for B write your answer as a fraction or as a whole number. B-1/7=4

The slope of the tangent line to the curve f(x)=4tan x at the point (π/4,4)

9n + 7(-8 + 4k) use k=2 and n=3

6(k-7) -2=5

Find the distance from the point (2,-1) to the line 2x-5y+10=0

When comparing two investment options, one with an expected return of 10% per year and another with an expected return of 6% per year, which option would be more profitable considering the capital gains tax rate is 20%?

Answer to a math question When comparing two investment options, one with an expected return of 10% per year and another with an expected return of 6% per year, which option would be more profitable considering the capital gains tax rate is 20%?

You might be interested in