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 value of sin(45°) in trigonometry?

Math Question: Find the resultant displacement when a vector of magnitude 15 units is added to a vector of magnitude 10 units at an angle of 60 degrees. (

What is the length of the hypotenuse if the other two sides of a right triangle measure 6 cm and 8 cm?

New questions in Mathematics

-6(3x-4)=-6

Consider the relation R defined on the set of positive integers as (x,y) ∈ R if x divides y. Choose all the true statements. R is reflexive. R is symmetric. R is antisymmetric. R is transitive. R is a partial order. R is a total order. R is an equivalence relation.

Find the equation of the normal to the curve y=x²+4x-3 at point(1,2)

*Question!!* *Victory saved 3,000 in first bank and 2,000 Naira in union bank PSC with interest rate of X% and Y% per annual respectively his total interest in one year is #640. If she has saved 2,000 naira with first bank and 3,000 naira in union bank for same period she would have made extra 20# as additional interest, then find the value of X and Y

x/20*100

Solve the math problem 400 students are asked if they live in an apartment and have a pet: Apartment: 120 Both: 30 Pet: 90 The probability that a randomly selected student not living in an apartment has a pet is

Find the derivatives for y=X+1/X-1

From 1975 through 2020 the mean annual gain of the Dow Jones Industrial Average was 652. A random sample of 34 years is selected from this population. What is the probability that the mean gain for the sample was between 400 and 800? Assume the standard deviation is 1539

TEST 123123+1236ttttt

Take the limit of (sin(x-4))/(tan(x^2 - 16) as x approaches 4.

Let f and g be defined in R and suppose that there exists M > 0 such that |f(x) − f(p)| ≤ M|g(x) − g(p)|, for all x. Prove that if g is continuous in p, then f will also be continuous in p.

To find the increased amount on a standard term deposit with the following conditions: starting amount: BGN 13000, type of deposit: annual, annual compound interest rate: 1.4%, after 4 years;

When taking a test with m closed answers, a student knows the correct answer with probability p, otherwise he chooses one of the possible answers at random. What is the probability that the student knows the correct answer given that he answered the question correctly.

Cuboid containers (open at the top) should be examined with regard to their volume. The figure below shows a network of such containers (x ∈ Df). Determine a function ƒ (assignment rule and definition area D) that describes the volume of these containers and calculate the volume of such a container if the content of the base area is 16 dm². Show that this function f has neither a local maximum nor a global maximum

1. The cost to transport 250 packages of cement 120 kilometers is $600. What will be the cost to transport 500 packages 300 kilometers?

2+2020202

What js the greatest 4-digit even number that can be formed by 3,6,1,4?

Recall that with base- ten blocks, 1 long = 10 units, 1flat = 10 long, and a block = 1 unit. Then what number does 5 flat, 17long and 5 units represent represent ?

Dano forgot his computer password. The password was four characters long. Dano remembered only three characters: 3, g, N. The last character was one of the numbers 3, 5, 7, 9. How many possible expansions are there for Dano's password?

In an experiment to assess the effect of listening to audiobooks while driving, participants were asked to drive down a straight road in a driving simulator. The accompanying data on time (in milliseconds) to react when a pedestrian walked into the street for 10 drivers listening to an audiobook are consistent with summary statistics and graphs that appeared in the paper "Good Distractions: Testing the Effect of Listening to an Audiobook on Driving Performance in Simple and Complex Road Environments."† (Round your answers to four decimal places.) 1,018 1,007 1,054 988 937 1,030 1,065 1,011 860 1,106 A button hyperlink to the SALT program that reads: Use SALT. Calculate the variance for this data set. 7437.7333 Incorrect: Your answer is incorrect. Calculate the standard deviation for this data set. 86.2022 Incorrect: Your answer is incorrect.

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