How much will pay in taxes on interest income

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Problem 1: David saves $3000 of his Year 1 income to spend in Year 2. The interest rate is 12 percent, the tax rate that applies to interest income is 30 percent, and the sales tax rate is 10 percent. If David spends all available funds in Year 2, how much will he pay in taxes on his interest income and how much will he pay in sales taxes?

Reference no: EM132816938

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