An engineer who made an annual return of 8% after taxes on a stock investment was told by his accountant that this is equivalent to a 12% per year before-tax return. What percentage of taxable income is the accountant assuming will be taken by taxes?

What will be an ideal response?


0.08 = 0.12(1 - Te)_____
1 - Te = 0.667
Te = 0.333 (33.3%)

Trades & Technology

You might also like to view...

When are the planet gears fully meshed with the sun gear and ring gear?

A) When overdrive is occurring B) During gear reduction C) During torque multiplication D) All the time

Trades & Technology

Interiorscape design for shopping malls has evolved over the past forty years, with more importance

placed on ____, rather than merely placing ordinary plants in standardized planters

a. exotic specimens c. style and selection b. flowers and bulbs d. dramatic placement and lighting

Trades & Technology

Technician A says that valve stem height should be checked and the top of the valve ground, if necessary. Technician B says that after a thorough cleaning, the cylinder head should be assembled using new valve stem seals. Who is right?

A) Technician A only B) Technician B only C) Both technicians A and B D) Neither technician A nor B

Trades & Technology

Which of the following is the most recent truck data bus system?

A. SAE J1587 B. SAE J1708 C. SAE J1939 D. SAE J-2010

Trades & Technology