the current year, she will invest in certificates of deposit that yield 5%. Katherine is in the 28% marginal tax bracket in all relevant years. What is the minimum amount Katherine should accept as a deferred pay option? [Hint: the compound interest factor is 1.1934.]
$59,669
The $50,000 salary will be $36,000 [(1 – .28)($50,000)] after-tax. When this is invested in a CD
The $50,000 salary will be $36,000 [(1 – .28)($50,000)] after-tax. When this is invested in a CD