Annual compounding of interest and appreciation

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Ron and Gail are going to invest some of their $$$$ for two years from January 1 2016 to December 31, 2017

Use 2016 rates, etc. for both 2016 and 2017.

Their taxable income without any return is $200,000.

They will invest 55180 for two years...leaving investment to grow for those two years.

seattle municipal bonds paying 2.50% interest.

Show the net return will give in 2017 considering expenses, annual

compounding of interest/appreciation, timing of income and of tax payment, and tax rates. Incorporate 2016 net income and net costs into the answers to see true net return.

Reference no: EM131287223

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