Investing at his marginal tax rate

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Timothy Clum is in the 25 percent tax bracket and is considering the tax consequences of investing $2,000 at the end of each year for 30 years, assuming the investment earns 8 percent annually.

If Timothy pays tax on the $2000 prior to investing at his marginal tax rate, how much of the $2000 will be invested?

Reference no: EM131595817

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